The Willis Towers Watson Covid-19 India Readiness Survey 2020 revealed that about 77 per cent of organisations are unlikely to go reduction in salaries.
Coronavirus Salary Cut News: Industries across the world have been dealt a serious blow due to the Coronavirus pandemic which has wreaked havoc in over 200 countries. At the time of writing this article, the deadly COVID-19 infection has affected over 35 lakh people and killed nearly 2.11 lakh. Struggling to survive amid the crisis, companies all over have gone for salary cut of the their employees. In India too, firms have announced pay cuts which they say would continue for a next few months.
However, in some solace amid the gloom a survey has found that a majority of companies may not be going with any kind of salary cut.
The Willis Towers Watson Covid-19 India Readiness Survey 2020 revealed that about 77 per cent of organisations are unlikely to go reduction in salaries. In further good news, 33 per cent companies may roll out performance appraisals and bonuses as planned previously.
However, the survey, which was conducted from 20 March to 31 March 2020, also showed that 42 per cent of organisations are yet to decide their future course of action as far as salary increment budgets were concerned.
The survey also showed that 57 per cent of organisations believe that there will be ‘large negative impact’ on their businesses in the next six months, while 46 per cent said there will be ‘moderate to large negative impact’ of the Coronavirus spread which has forced the government to announce a nationwide lockdown.
Prime Minister Narendra Modi had initially announced a 21-day complete lockdown which was scheduled to end on April 14. However, with Coronavirus cases witnessing continuous surge the lockdown was increased till May 3.
As far as India’s Information Technology industry is concerned, hirings will not be encouraging this year, believes industry veteran Mohandas Pai. The former Infosys top official pointed out that senior level staff in the industry may opt for 20-25 per cent salary cut due to the negative impact of Coronavirus outbreak.