Aug 3: Employees of private carrier Jet Airways will have their salaries cut by up to25 percent starting this month. The full-service carrier has decided to cut down the salaries of its employees owing to mounting pressure from elevate crude price and weakening rupee.
For employees who earn up to Rs 12 lakh annually, the pay cut will be five per cent. The pay cut is as high as 25% for those with annual salaries greater than Rs 12 lakh. The latter pay cut will also be effective for employee s with annual salary more than Rs 1 crore.
As for the pilots, the pay cut will be as much as 17 per cent. The annual salary bill of Jet Airways stands close to Rs 3,000 crore. With the salary cut move, the carrier is expecting to bring it down by at least Rs 500 crore.
According to Economic Times, there is no clarity regarding how long the pay cut will remain in effect. It’s also not sure whether employees will be refunded with the deducted salary if it’s made ineffective at a later stage.
The report also mentions that talks were held previously by the top management with staff regarding the pay cut. The talks are expected to continue on the issue. Some of the pilot staffs have also reportedly decided to make the jump to other carriers with better pay in case the pay cut move gets implemented. Prior to the pay-cut decision, Jet Airways had asked junior pilots to take 10 days leave every month in order to cut the salary costs.
Jet Airways is also apparently struggling to limit the costs. The carrier had registered a loss of Rs 1036 crore during the quarter ended March 31. Jet Airways had gained a profit of Rs 602 for the same quarted during the previous year.