SpiceJet to Defer Up to 35% of May Salary for Some Employees
Debt-strapped airline SpiceJet will postpone employee wages by 35% in May. The airline has also informed its pilots that they will now be paid “according to the hours of work paid”.
A few days after celebrating its 16th anniversary of operation, SpiceJet has now informed its employees: “Although the wages for the month of May are credited to your bank accounts on June 1, there will be a deferral of up to 35%. for some of our employees. The deferred amount will be released from the second week of June. “
However, lower echelon employees will not be affected by this deferral and their salaries will be paid in full.
He added that SpiceJet is now opting for a structure where employees will be paid based on contributed work hours while maintaining base thresholds. This comes even as the employees have been working on a pay cut for several months.
The company said the second wave of Covid-19 hit the Indian aviation industry the hardest, but this time the impact has been much more severe, especially on our industry. During this second wave, passenger traffic fell to less than 10 percent from pre-Covid levels.
Aware of the sudden increase in the number of active Covid cases across the country, the decrease in passenger traffic and load factors, the Government also recently reduced the capacity cap from 80% to 50% of capacity. pre-Covid levels.
The sudden drop due to an unprecedented surge in Covid business coupled with various travel restrictions across India has negatively impacted our revenue and cash flow. It is still not clear whether the cases have peaked or whether the traffic has reached a trough, and therefore, he made such a decision.