Reliance Industries has decided to restore the salary cuts that it had imposed in April this year, to overcome the financial burden brought on by the pandemic. An official e-mail, sent to the more than three and a half lakh employees of the Group, informed that the salary cuts will be reversed and arrears will be deposited in the employees’ accounts along with their October salary. This is good news just in time for Diwali.
That is not all. Employees of RIL will also receive an advance 30 per cent of the variable pay from their next year’s salary in appreciation of their hard work during these troubling times. The employees of Reliance Jio, RIL’s telecom wing, have already received the full variable payouts.
The payouts will increase the spending power of employees at a time when the demand in the country needs a push and the economy needs a boost.
In April this year, the employees of RIL’s hydrocarbons division had taken a 10 to 50 per cent pay cut, while the chairman himself had given up his entire salary. The performance-linked bonus and incentives, usually paid in the first quarter, had also been deferred.
The board of directors, all executive directors, executive committee members, and senior managers had given up 30 to 50 per cent of their salaries.
However, staff with salaries less than Rs 15 lakh did not have to suffer any pay cut.