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SpiceJet announces 10-30% cut in March salary for all employees

Employees will take 10-30% deductions in their March pay. SpiceJet chairman Ajay Singh will take a 30% pay cut. IndiGo, India's largest airline, had announced similar cuts a couple of weeks ago. GoAir, owned by the Wadia group, has asked employees to go on a rotational leave without pay.

ET Bureau|
Last Updated: Mar 31, 2020, 04.14 PM IST
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NEW DELHI: SpiceJet today said that its employees will take a pay cut of up to 30%, as grounding of operations due to Coronavirus has impacted the financial of all airlines, including SpiceJet.

The airline has, however, assured that its employees in the lowest pay grades will remain unaffected by the decision.

“In its bid to tide over the unprecedented crisis thrust by the COVID-19 pandemic, SpiceJet today announced a company-wide pay cut for its employees for the month of March, 2020. The airline has implemented a 10-30% pay cut for all its employees across top and mid rung levels. In the wake of the crisis, the airline’s Chairman and Managing Director, Ajay Singh, has decided to opt for the highest cut of 30% in salary,” said a statement from the company.

SpiceJet is not the first airline to announce pay cuts during these difficult times. All other airlines have also announced pay cuts for the employees and people at lower levels have been exempted.

The airline has also announced ‘leave without pay’ for employees during March 25th-31st, 2020 – the period of the lockdown when all passenger flights were suspended.

“However, employees who have been actively working during this period like our cargo, ground staff, crew who have flown during this time will not be affected by the ‘leave without pay’ and their salaries for this period will be reimbursed,” said the statement.

The company says that these measures are in the ‘best interest for everybody at SpiceJet as it aims to sail through the crisis with zero retrenchment.’

“The COVID-19 pandemic and the subsequent lockdown have forced us to take some tough measures to ensure that no one at SpiceJet is retrenched. What we are facing is a global phenomenon and no airline in the world is immune to the impact. Tough times don’t last, tough people do. SpiceJet was born of adversity and it is the same adversity that brings out the best in each and every one of us,” SpiceJet Chairman and Managing Director Ajay Singh was quoted in the statement.

(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)
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