Mukesh Ambani’s Reliance Industries Limited (RIL) is going cut 10 per cent salary for some of its employees in the hydrocarbon division due to the “adverse impact” of the novel coronavirus pandemic on fuel demand worldwide.
The decision is only going to impact the employees in the aforementioned division who are earning more than Rs 15 lakh per year, and those earning less will not be impacted, the company said in a note signed by Reliance Industries Executive Director Hital R Meswani.
Apart from this, RIL’s board of directors would forgo their salaries from 30 per cent to 50 per cent, while company’s chairperson Mukesh Ambani will give up his entire compensation.
“The hydrocarbons business has been adversely impacted due to reduction in demand for refined products and petrochemicals. This has of course put pressure on our hydrocarbons business necessitating optimisation and cost reduction across all fronts,” said the note.
Extra benefits to the employees such as annual cash bonus, performance-based incentives have also been postponed and will not be paid at the usual time of first quarter of a year.
While the statement from Meswani said the company would be closely monitor the economic and business environment, it also said it would re-evaluate its response to the situation on a continuously “to improve the earning capacity” of the business.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 999/year is the best way you can support our efforts.