The move comes weeks after top executives voluntarily surrendered 15 percent of their payments for 2020-21.
The COVID-19 crisis is expected to have a major impact on the economy and many companies have cut wages. Some have also laid off staff where the disorganized sector is most affected. Unemployment in India touched 27 percent in the week to May 3, according to think tank CMIE.
What seemed like a 2-3 month phenomenon at first has turned out to be a pandemic with serious consequences for both life and livelihoods. More importantly, it is becoming increasingly clear that the pandemic will not disappear anytime soon, Kotak’s group chief Recursos humanos said Officer Sukhjit S Pasricha in an internal note.
The transition to calibrate wages is driven by the goal of business sustainability, Pasricha said.
“We have decided a 10% reduction in CTC (cost to the company) for all colleagues with a salary of more than Rs 25 lakh per annum with effect from May 2020 for FY21, the note says.
Reference to the bank’s CEO Uday Kotak, the remark said, “we are in unclassified waters and only time will show how we, as a company, as an economy, as a country, as a world, as humanity, appear in this momentous event.
The group and Kotak had even previously announced donations to the PM-CARES Fund and also the Maharashtra Prime Minister’s Relief Fund.
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