Mukesh Ambani’s Reliance Industries Limited will roll back salary cuts for the employees of its hydrocarbons division, according to the PTI report. In addition to this, the company will pay a performance bonus to its employees that had been deferred due to the pandemic.
The firm is also offering an advance 30 percent of the variable pay from the next year’s salary to its employees as a goodwill gesture for working during the pandemic.
Earlier in April, Reliance had announced a salary cut of its employees by 10 percent to 50 percent, with Mukesh Ambani agreeing to forgo all his remuneration. Also, the company had deferred annual cash bonus and performance-linked incentives to its employees that are normally paid in the first quarter.
While Ambani had to forgo his entire ₹15-crore compensation, Reliance’s board of directors including executive directors, executive committee members, and senior leaders saw 30 per cent to 50 per cent cut in their compensation.
Employees with compensation of less than ₹15 lakh did not have any reduction in compensation but those earning higher than that saw a 10 per cent reduction in fixed pay. While the salary cuts of employees have been restored, it isn’t clear if Ambani’s remuneration has also been restored.
During the nationwide lockdown, Reliance’s hydrocarbons business witnessed huge losses because of fall in demand for refined products and petrochemicals.
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