Spicejet HR said that the company is resorting to the worked hours-based pay structure due to “extreme and unavoidable circumstances”.
Spicejet is going back to its previous pay structure wherein employees were paid based on hours worked.
It also said that some employees may receive a “graded deferment” of upto 35%.
Salary Payout Dates
They clarified that the deferment would not apply to employees with the lowest pay grades and will receive the full amount.
All salaries for the month of May will be paid on June 1.
The deferred amount will be released from the 2nd week of June.
It was recently reported that the airline also deferred April’s salary up to 50% for a big chunk of its staff.
Reason Behind The Move
In a company wide letter sent by Spicejet HR, they said that the company is resorting to the worked hours-based pay structure due to “extreme and unavoidable circumstances”.
They said that the aviation industry is once again severely impacted by the pandemic.
The various travel restrictions and other limiting measures have delivered a blow to the domestic airliners revenue and cash flows.
With the pandemic’s second wave, flight passengers now consist of less than 10% in comparison to pre-pandemic levels.
Govt Issues Bans And Cap On Passengers
The ban extended by the DGCA on international flights till June 30 has worsened the situation.
The Civil Aviation Ministry has set a limit of maximum passengers allowed to be boarded from 80% to 50% effective June 1.
The ministry justified its decision by saying that it was taking into account the sudden and extreme surge in cases during the ongoing 2nd wave.
It was observed that there was also a significant drop in the number of passengers and plane occupancy, which drove the ministry to declare the cap.
SpiceJet Cuts Salaries Of Employees By Upto 50% As Revenues Take Massive Hit