Reliance Industries has announced that the company will reduce the salaries of its employees by 10%. The reduction will be for the employees in the oil and gas division, an internal memo said.
“The COVID-19 pandemic has posed unprecedented challenges for India and the world. All societies, industries and businesses are impacted and Reliance is no exception,” the memo read.
The company’s board of directors would forgo 30% to 50% of their salary, and Chairman Mukesh Ambani, India’s richest man, his entire compensation, according to a letter signed by Reliance Industries Executive Director Hital R Meswani.
Also the letter clarified that the employees in the hydrocarbons division with compensation of less than Rs 15 lakh per annum will not face any pay cut, while those above that will have a 10% reduction in their fixed pay.
“The hydrocarbons business has been adversely impacted due to reduction in demand for refined products and petrochemicals. This has of course put pressure on our hydrocarbons business necessitating optimisation and cost reduction across all fronts,” said the letter.
The letter said that the company would “closely monitor the economic and business environment,” and re-evaluate its response to the situation on a continuous basis “to improve the earning capacity” of the business.
Also, the company said that it will defer all annual cash bonuses and performance-linked incentives that are paid in the first quarter.
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