The Indian media industry continues to bleed, with pay cuts being reported in more and more organisations. Pay cuts were announced by large organisations including NDTV, Times of India group and more.
The Hindu announced pay cuts on Saturday for those earning above Rs 6 lakh per year. Those earning between Rs 6 lakh and Rs 10 lakh per annum would see a pay cut of 8%; those earning between Rs 10 lakh and Rs 15 lakh would see a cut of 12%; Rs 15 lakh to Rs 25 lakh is 16%; Rs 25 lakh to Rs 35 lakh is 20%; and those earning above Rs 35 lakh would see a cut of 25%.
In a letter sent to employees, Hindu Group CEO LV Navaneeth said that wholetime directors on the Board and independent directors have voluntarily taken cuts as well.
NDTV announced that apart from those earning less than Rs 50,000 per month, salaries will be cut across the board, with progressively higher cuts depending on salary. In an email to employees, NDTV said that those earning the most will take the biggest cuts, and each employee was separately sent an email about their pay cut.
Pay cuts will remain in force till July 1, pending review by the management at the time. âThis team will work its hardest to improve the financial position of the company but because revenue will depend entirely on when â and to what extent â the economy as a whole revives, there is no way to forecast what might be needed in three months,â the email read.
In a filing with the stock exchanges on Thursday, NDTV said, âThe management of the NDTV Group has been forced to implement a salary cut, effective April 1, of between 10-40 per cent based on income slabs for a period of three months (subject to detailed review at the end of the period ) across its employee base (where employees earn more than â¹50,000 per month).
Last week, Hindustan Times cut the take home pay of employees. According to Newslaundry, an email sent to the staff by HT Media CEO Praveen Someshwar said that the national newspaper was losing Rs 3.5 crore a day as it was incurring costs without the revenues. Instead of cutting pay, the company made a part of part of employee pay variable. It is important to note, however, that employees rarely get their full variable pay. Variable pay can be linked to the employeeâs performance, as well as the financial performance of the company.
From April 1, HT said that 5% of the salary earned by those whose CTC (Cost to Company) is Rs 6-10 lakh would be variable. For those earning between Rs 10 lakh and Rs 20 lakh, 10% will be variable, and for people earning above Rs 20 lakh, 15% will be variable. This will not affect those earning below Rs 6 lakh.
According to NL, the appraisal cycle has also been deferred. However, the company offered insurance that would cover their families as well.
The Times of India group also instituted pay cuts for its main newspaper. For TOI, the group said that the variable pay/incentive to be given at the end of Q1 of FY 21, which ends in June, would be deferred, and will be reviewed later. Increments have also been deferred and will be reviewed at the end of Q2 depending on business performance. 5% of total remuneration would be cut for those earning above Rs 10 lakh per annum; and 10% would be cut for those earning more than Rs 1 crore per annum from April 1.
For those with salaries above Rs 6.5 lakh, 10% of their pay has been moved to a âspecial performance incentive poolâ. The payment of this will depend on a target the company has to achieve a profit before before interest, taxes, depreciation and amortisation for 2020-21.
Salary cuts are reportedly on the anvil for other Times Group properties like Times Now and Economic Times.
Malayalam channel JaiHind TV, a Congress mouthpiece, also announced steep pay cuts. Those earning upto Rs 10,000 gross salary would see pay cuts of 30%; 35% for those earning between Rs 10,000 and Rs 15,000; and 40% for those earning between Rs 15,000 and Rs 30,000. Those earning above Rs 30,000 would see a 50% pay cut.
âProfessional Fees, Anchor Remuneration, Retainership fees will also lessen according to the above slab. Reimbursement of local conveyance except for the marketing team has been withdrawn. Metro Allowance of Rs 8000 and Rs 5000 will be reduced to Rs. 5000 and Rs. 3000 respectively,â Managing Editor MM Hassan said in an office order. The companyâs joint managing director has offered to take a 100% cut in his honorarium.
Pay cuts, layoffs and furloughs were also reported at The Quint, Indian Express and Business Standard.