COVID 19 pandemic has affected the economy. At least 30 percent of companies have cut their staff salaries. This is revealed in a survey of Deloitte Touche Tohmatsu India LLP. One-third of the companies involved said that they will not give any increment to their employees this year. 27 percent of the companies have not taken any decision yet, while 30 percent of the companies have cut the salary of their employees.
This reduction is more in the sectors where the revenue of companies is badly affected. Services and manufacturing have been hit the most in this. On the other hand, Life Sciences and IT Enabled Services (ITeS) have given reduced the salary. Companies have cut the salary of the top and senior management staff. The average compensation of the top management has been reduced by 22.5 percent on average. Some companies have given increment at lower management level and have cut the salary of top and senior-level officers.
Two out of every three companies have reduced salary from one month to nine months. 33 percent of the companies have not set a limit within a given time. It has also been revealed in the survey that the actual increment in all sectors has been less than the estimates of 6 months ago. In 2020, no industry has given increment in double digits.