The oil to telecom conglomerate Reliance Industries (RIL) has rolled back salary cuts which it announced in the backdrop of Covid 19 lockdown in April-May this year. The move suggests that RIL is optimistic about future growth prospects and is of the view that worst of the impact due to the pandemic is now over.
In an e-mail sent to 3.5 lakh direct employees of the RIL group, the company clarified that it is reversing the salary cut retrospectively and will be crediting the arrears along with salary for October month. "The company has reversed the 10% reduction in fixed pay that was effected in April 2020 for those with total annual pay of over Rs 15 lakh. This reversal is with retrospective effect from April 1, 2020," said the person cited in the ET report.
Also, as per an ET report, the company will also issue performance bonus for employees working in the group's hydrocarbon business. Besides, for the first time the hydrocarbon business would provide a 30% advance of the variable pay from pay-outs of the next year awarding its over one lakh employees for their services during the pandemic.
Those employed with Group's telecom vertical-Reliance Jio have got 100% of their variable pay. Nonetheless, the conglomerate has not taken any decision with regard to salary hikes.
Notably, in April-May, the company said that its higher management will relinquish 30-50 percent of their salary. Also, for those earning annually Rs. 15 lakh and more there was announced a 10% reduction in fixed pay. But those with earnings of less than the above specified figure, there was no cut in compensation. So, now for the higher management also the earlier salary will be restored.
Indian start-ups including Zomato, Grofers, UpGrad have also been rolling back the cuts in salary which were implemented during the lockdown. Also, IT companies such as TCS and Infosys with growth imminent in the upcoming quarters also announced pay hikes.