Wednesday, August 01, 2018

Jet Airways to cut up to 25 per cent of employees' salaries amid rising expenses

New Delhi: The latest airline to feel the pinch of rising crude prices and falling rupee value is Jet Airways. The airline has informed its employees that they will have to take a 25% salary cut due to rising operational expenses. The salary cut is from 5% for employees earning Rs 12 lakh per annum to 25% for employees earning up to Rs 1 crore. Salary cuts for pilots are going to be in the range of 17%.

The airline has an annual salary bill of Rs 3,000 crore. The salary cut is expected to reduce this expenditure by around Rs 500 crore.

An official said that very few details are known as of now. It is not known how long this will carry on for. Moreover there's no clarity on whether there will be a refund of the reduced salary later. The salary cut from managers to CEO will be implemented from this month, the official said. There have been meetings of employees with top management regarding the pay cut and meetings are set to continue.
01/08/18 Business Today

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