One of India's largest financial conglomerates Indiabulls group informed its employees that 20-50 per cent of their salaries will be cut for selected people across levels and locations, effective April 1, a source privy to the development confirmed.
The Indiabulls group had donated Rs 21 crore to the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) to support the central government's move to combat the Covid-19 outbreak.
The recent development comes days after Indiabulls had earlier announced that its senior management has voluntarily opted to take up to 35 per cent pay cut for the fiscal year 2020-21. The company's chairman Sameer Gehlaut has decided to forgo his salary, while vice-chairman, managing director and CEO Gagan Banga, has opted to take 75 per cent salary cut for 2020, the firm confirmed in a filing to exchanges.
Workers raise concern over pay cut
It seems that several employees of the IndiaBulls have taken to Twitter complaining about the salary cuts across divisions.
"Indiabulls is cutting 40% salaries of employees forcefully without any explanation. In this pandemic situation how can we will survive. please help us," read a tweet.
"I'm working in Indiabulls from last 2 years, now the company has forcefully cut 50% salaries. It's a bad move to survive in this situation, kindly help us for getting full salaries," read another tweet.
Covid-19 outbreak triggers unprecedented pay cuts, layoffs
Several Indian companies have begun cutting salaries and sacking people in defiance of the government order as the firms grapple with "economic pressures" due to the Covid-19 outbreak.
- Employees at Bajaj Auto have agreed to a 10 per cent wage cut for the period between April 15 and till the lockdown is over.
- Soft Bank-backed Oyo Hotel and Homes has asked all its employees to take 25 per cent pay cut between April and July.
- SpiceJet has informed its pilots of the domestic carrier that they will not be getting any salaries for April and May. Earlier, SpiceJet had announced a 10-30% pay cut for all its employees.
Disclaimer: An official confirmation on the pay cuts of employees is awaited.