Amara Raja Group has announced that the salaries of the junior- and senior-management levels of its workforce will be deferred due to the economic impact of the COVID-19 menace on business.
The press release issued by the Indian multinational conglomerate says that the promoters of the Group serving as managing directors for the various businesses of the Group have all voluntarily taken a 50 per cent pay deduction in their total remuneration for the current fiscal, to help tide over the crisis.
In addition, the organisation will be postponing increments and pay revisions for the current financial year, across all categories of employees. The Group intends to reward its workforce in the next financial year, if business picks up as expected.
Jaikrishna B, president (Group HR) Amara Raja Group, has said that business performance linked pay (BPLP), which aims to reward employees in the next financial year if things get back to normal, will prove to be a win-win situation for both employees and company
The organisation has decided to restructure the current CTC through a graded reduction of 10 per cent to 25 per cent. This will apply to the junior and senior levels, and the amount thus decreased will be reconstituted as BPLP in the pay structure for the remaining ten months of the financial year 2020-21.
Simply put, if the business is able to recover and perform in a satisfactory manner, the reduced amount will be paid back to the staff as BPLP.
According to the Company’s annual report, Amara Raja Batteries, which is the Group’s flagship business, employed about 7,541 employees, as on March 31, 2019. The Company reportedly spent Rs 345.23 crore towards salaries and other benefits.