In view of the global economic meltdown coupled with mounting financial losses, Naresh Goyal-run Jet Airways has slashed salaries by up to 25 per cent for all its employees drawing a gross salary of above Rs 75,000 per month.
"Huge financial losses have forced the airline to slash salaries by up to 25 per cent to all its employees drawing a gross salary of above Rs 75,000 per month," an industry source told PTI on Friday.
A Jet Airways spokesperson confirmed the pay cuts but said that the move was only temporary and once the situation improved, it would do a revision.
The salary cuts range from 5 to 25 per cent and include the top management. In addition, other perks like car facilities and car maintenance allowances have also been withdrawn from May onwards, the source said.
While the top management faces a 25 per cent pay cut, those drawing a salary of Rs five lakh and above would have to take a 20 per cent cut, the source said. Salaries of employees in the Rs two-five lakh bracket have been cut by 10 per cent, whereas those employees getting Rs 75,000-200,000 have to take a five per cent cut.
Jet Airways will discontinue some senior management perks and undertake a graded salary reduction for its management cadre to be effective from May, the spokesperson said.
This temporary salary reduction would only apply on employees earning a gross salary of Rs 75,000 and above, the airline said.
The move was a part of a cost-restructuring exercise, which the airline has undertaken to meet the challenges of the global economic downturn and in the aviation sector in particular, the spokesperson said.
"While announcing the pay-cuts, the management has said that the financial position of the airline is becoming precarious and that is why it was resorting to such a step," the source said.