TVS Employees Voluntarily Accept 20% Salary Cut For 6 Months; IDFC First Bank Will Cut Salaries Too
Two-wheeler manufacturing major TVS has announced that upto 20% salary cuts will be rolled out for all their employees, except workmen.
And this salary cut has been voluntarily offered by the employees. For 6 months.
Meanwhile IDFC First has become the 2nd Indian bank after Kotak Mahindra bank to announce salary cuts.
TVS Motor Company Will Cut Upto 20% Salary
TVS Motor Company has announced that upto 20% salary cut will happen for all of their employees, except workmen.
A spokesperson said, “In the wake of the unprecedented crisis, TVS Motor Company has rolled out a temporary salary reduction across different levels for a period of six months,”
While 5% salary will be reduced for junior executives, 15-20% salary cut will happen for senior management. Workmen level employees will not get reduced salary.
These salary cuts will be applicable for the next 6 months.
The spokesperson added, “It was heartening to see employees coming forward and offering to take salary reduction voluntarily,”
While in March, 2020, TVS reported 55% less sales, in April, there was zero sales. In the domestic market sales, TVS experienced a massive decline of 66% in overall sales.
Their Tamil Nadu plant was also shut down on March 23, due to the nation-wide lockdown.
IDFC First Will Cut Salaries
After Kotak Mahindra Bank, IDFC First has become the 2nd bank to cut salaries of their employees, due to coronavirus impact.
While their CEO: V Vaidyanathan is taking 30% cut in salary, senior management has voluntarily agreed to accept 10% salary cut.
A bank statement said: “Such pay cut forms part of the bank’s austerity measures which start at the top,”
Bonus for the senior management has also been reduced by upto 65%
Despite the pandemic and slowdown, the bank has paid 100% variable pay to more than 78% employees, and they have also honored job offers to lateral and 550 management trainees.
Earlier, Kotak Mahindra became the 1st bank in India to cut salaries. For all employees earning more than Rs 25 lakh, 10% salary was reduced.
We will keep you updated, as more details come in.