Nearly six months after Reliance Industries initiated pay cuts in its hydrocarbons and media businesses, the company has now reinstated pay cuts, and will be paying out the arrears. Reliance had instituted a 10% pay cut for senior-level employees of its hydrocarbon business effective April 1, 2020.
The company has now informed employees that the same has been reversed, despite the external business environment continuing to be challenging. TNM has seen a copy of this communication. The variable pay-out for the year 2019-20, which was deferred, will be paid out as well.
In addition, the company will also be disbursing 30% of the variable pay to employees as an advance against future variable pay-outs, as a gesture of goodwill ahead of the festive season.
â€śAll these pay-outs will be effected along with the October 2020 payroll. All these measures have been taken in order to support you in these challenging circumstances,â€ť it told its employees.
According to reports, Reliance Industries will also be reinstating pay cuts at its media arm Network 18, which also saw pay cuts from April across levels. With advertising revenue picking up, salary cuts of all Viacom18 employees will reportedly be reinstated along with a pay out of the arrears of the past 6 months.
In April, Reliance Industries Chairman Mukesh Ambani said that he will forgo his entire salary of Rs 15 crore until the impact of COVID-19 ended. The company had also cut 30% pay of the companyâ€™s board of directors, including Executive Directors, EC members and senior leaders. However, it is not clear yet if Ambaniâ€™s salary is being reinstated as well.
Meanwhile, those in the hydrocarbons business with a salary of Rs 15 lakh per annum and above took a 10% cut in fixed pay.
However, salaries of employees in the retail and telecom businesses didnâ€™t see any impact. As per an Economic Times report, Jio employees have already received their payment linked incentives (or bonuses).