COVID-19 impact: SpiceJet to pay employees based on work hours, defers up to 35% of May salary for some

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According to the company's letter, "During this second wave, the passenger traffic has fallen to less than 10 percent as compared to the pre-Covid levels."

COVID-19 impact: SpiceJet to pay employees based on work hours, defers up to 35% of May salary for some

Domestic flight operator SpiceJet is resorting to a salary restructure plan including paying employees as per the number of hours served and deferment of salary up to 35 percent for a section of employees among other measures to deal with the impact of the second wave of COVID-19.

“Recognising the sudden surge in the number of active Covid cases across the country, decrease in passenger traffic and load factors, the Government has also recently reduced the capacity cap from 80 percent to 50 percent of the capacity of the pre-COVID level. This sudden drop due to unprecedented surge in COVID cases coupled with varied travel restrictions across India has adversely affected our revenue and cash flows,” said a letter from HR to the employees.

The letter mentioned that the company will be following the old structure of paying employees for the number of work hours contributed. The company will also be deferring the salary up to 35 percent for some of its employees according to their grade, the letter added.

The deferred amount would be released from the second week of June. The company did clarify that employees at the lowest pay grades would be unaffected by the deferment.

“The Company is reverting to the structure where employees will be paid according to the work hours contributed while maintaining basic thresholds. While the salaries for the month of May shall be credited to your bank accounts on 1 June, there will be a graded deferment of up to 35 percent for some of our employees,” the letter added.

According to the company's letter, "During this second wave, the passenger traffic has fallen to less than 10 percent as compared to the pre-Covid levels."

The second wave of COVID-19 has caused widespread lockdowns, along with travel restrictions both internationally and domestically.

In order to deal with the impact of COVID-19 lockdown the budget airline also deferred April salary up to 50 percent for a significant section of employees, PTI reported recently.

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