Up To 35%: Indigo to Go for Deeper Pay Cuts for Senior Staff

IndiGo’s Chief Executive Ronojoy Dutta said he will increase his personal pay cut percentage to 35 percent.

Published27 Jul 2020, 04:49 PM IST
2 min read

Airline major IndiGo will institute deeper pay cuts for its senior management and pilots to tide over COVID-19 induced economic turbulence.

Accordingly, IndiGo's Chief Executive Ronojoy Dutta conveyed the management's decision to employees via a letter which was reviewed by IANS.

"In May of this year, we had implemented pay cuts of varying percentages, across the board for all employees, except for bands A and B. As part of our ongoing efforts to adjust our cost structure down in line with reduced revenues, I am afraid we need to take deeper pay cuts for ourselves," the letter said.

"To cushion the impact among lower-paid employees, this time around we will increase the pay cut percentages only among the employees at the very top of the pay pyramid."

Dutta said he will increase his personal pay cut percentage to 35 percent.

"I am asking all senior vice presidents and above to take a 30 percent pay cut, all pilots will see their pay cut percentages increased to 28 percent, all vice presidents will take a 25 percent pay cut and associate vice presidents will take a 15 percent pay cut," the letter said.

"These increased pay cuts will come into effect from 1 September."

According to Dutta, pay for all other employees will remain as per May announcement.

"It is our intent to gradually reduce the number of days without pay, as we add back more flights. We are not making any changes for August LWP (leave without pay) and from September, each department will decide on the LWP for each month based on workloads and staffing levels."

"You can expect a direct communication from your department head on LWP each month. It is my earnest hope that the environment is conducive enough for us to add capacity back quickly and reduce LWP to zero."

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