Jet Airways Employees to Face Pay Cuts: Airline Reduces Salary Up to 25%

Mumbai, August 1: On the back of the increasing cost of operations, due to rising crude, and a falling rupee, Jet Airways has informed its employees that they will have to take a pay cut. According to an Economic Times report, the pay cut will be in the range of 5 percent to 25 percent starting this month. 5 percent cut will be for those employees whose annual package is 12 lakh, and 25 percent cut will be for employees earning Rs 1 crore, and above.

There has been no clarity among the employees as well because they don't know till when will they have to face this salary cut, and if there will be a refund of the deducted salary at any later stage. The top management informed the employees about this decision by holding meetings with them. According to a company statement mentioned in the ET report, "As part of its cost rationalisation measures, the airline continues to evaluate all initiatives to achieve greater business efficiencies. Payroll is one of the important components of cost structure and the senior leadership has undertaken a reduction in salary to lead by example.”

Reportedly, Jet Airways has an annual salary bill of about Rs 3,000 crore, and this move is expected to reduce it by about Rs 500 crore. The decision of a salary cut has not gone down well with the pilots, who have not agreed to the pay cut.

(The above story first appeared on LatestLY on Aug 01, 2018 11:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).