SpiceJet Has No Money To Pay Salaries? Employee Salaries Delayed For 2nd Month In Row

For the second month in a row, SpiceJet employees alleged a delay in the disbursal of salaries on Wednesday.

SpiceJet Has No Money To Pay Salaries? Employee Salaries Delayed For 2nd Month In Row

In its defense, the budget airline mentioned that the payments were being made in a “graded format”.

SipceJet Delayed In Salary Disbursal

In the month of July, there was a delay in disbursal of salary for staff including flight crew.

Not only that many are yet to get Form 16 for the financial year 2021-22 as well, said SpiceJet employees.

An employee said, “The salary disbursal was timely for June. Also, the salaries are yet to match the pre-COVID-19 levels. The salaries being disbursed to captains and first officers are not even 50 percent of what they used to be before the pandemic outbreak in March 2020,”.

On the other hand, SpiceJet claimed it has started salary disbursal in a “graded format”.

Salary In Graded Format

The airline said, “We have started crediting salaries from today. Like the previous month, salary will be credited in a graded format,” in a statement to PTI.

On Wednesday, SpiceJet‘s Human Resources team informed employees about the delays citing that the “previous few months have been difficult” due to a “superlative fuel price hike” and also the “historically lean period of July-September”, as part of an internal communication.

Further adding, “We have started to see some green shoots of relief with a reduction in fuel price effective August 1. Passenger demand is also expected to be strong as we enter our traditional strong season in end-September,”.

The communication read, “However there are few milestones to be reached as we tread these difficult times and overcome the impact of the adverse business environment as we move along. In view of the foregoing, the salaries for the month of August shall be released in a staggered manner starting end-August until mid of next month, as completed in the previous month,”.

Pilots Leaving SpiceJet

Considering the pandemic and continued irregularities in salaries, scores of pilots have left SpiceJet in recent months. 

Included first officers as well as captains of its Boeing 737 fleet.

 A former SpiceJet pilot said, “It was difficult to continue on a salary which was one-third of what I got three years ago. There were also provident fund- and tax-related discrepancies in our payslips because of which many of us ended up paying more taxes even as the salaries we got did not merit those taxes,” who was part of the post-COVID exodus.

Notably, stress issues due to financial irregularities have often been flagged by the pilots and flight crew members.

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