Kotak Mahindra Bank Declares 10% Pay Cut For Staff With Over Rs 25 Lakh Annual Salary
Private sector lender Kotak Mahindra Bank Ltd. has decided on a 10 percent pay cut for the employees earning above Rs 25 lakh per annum, in a business sustainability move amid the Covid-19 pandemic.
The move comes weeks after the top management voluntarily surrendered 15 percent of their payments for 2020-21.
The Covid-19 crisis is expected to have a heavy impact on the economy and many corporates have been cutting salaries. Some have also retrenched staff, with the unorganised sector being hit the most.
The unemployment rate in India touched 27 percent in the week to May 3, according to think-tank CMIE.
What seemed like a two to three months phenomenon in the beginning, has turned out to be a pandemic with serious implications on both lives and livelihood. More importantly, it is increasingly clear that the pandemic is not going away anytime soon, Kotak's Group Chief Human Resources Officer Sukhjit S Pasricha said in an internal note.
The move to recalibrate salaries is driven by the objective of business sustainability, Pasricha said.
"We have decided on a 10 percent reduction in CTC for all colleagues with a salary of more than Rs 25 lakh per annum, with effect from May 2020 for FY21, the note said.
We are into unchartered waters and only time will tell how we as a firm, as an economy, as a country, as a world, as humanity, emerge from this momentous event.Uday Kotak, Managing Director, Kotak Mahindra Bank