MUMBAI: Reliance Industries (RIL) has announced a 10 per cent cut in the salaries of its employees to meet the challenge faced by the corona lockdown. Interestingly, Reliance had a profit of Rs 39,880 crore in the financial year 2019-20 and this salary cut will save Reliance Rs 600 crore annually. However, most of the experts are unable to understand the logic of this deduction, because RIL is not going to get any special benefit from this.
It is worth mentioning that this pay cut will be only for the employees of hydrocarbon business (refining and petrochemicals) and the annual salaries will be more than 15 lakh rupees. Apart from this, 30 to 50 percent of the salary of senior executives will be deducted. Chairman Mukesh Ambani himself will not take a salary, while his annual salary is Rs 15 crore.
In the financial year 2019-20, the company RIL has spent about Rs 6,067 crore on giving various benefits to the employees. RIL alone earns from the refining and petrochemical business. The company spent Rs 1,506 crore on employee salaries in the March quarter. At the consolidated level, the salary expenditure of the entire Reliance Industries including Reliance Jio and Reliance Retail in 2019-20 was Rs 14,075 crore.
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