Yatra.com implements temporary pay-cuts for employees; founders take 50% salary reduction

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Published: April 20, 2020 6:33:23 PM

The company, however, said these measures are "temporary" and being taken to avoid lay-offs, and it remains optimistic for the future.

These pay-cuts applicable on the CTC excluding the PLB component, the letter said adding that these pay-cuts are temporary till June 2020.These pay-cuts applicable on the CTC excluding the PLB component, the letter said adding that these pay-cuts are temporary till June 2020.

Online travel firm Yatra.com is implementing temporary pay-cuts for its employees including some being put on leave without pay from April 16 to June 30 due to the impact of the COVID-19 pandemic.

The company, however, said these measures are “temporary” and being taken to avoid lay-offs, and it remains optimistic for the future.

In a letter to the employees, Yatra.com said effective April 16, all employees will be categorised into four buckets, based on the current level of utilisation and the business scenario in days to come.

For the employees in the optimum utilisation category the applicable salary cut is 25 per cent, for mid-utilisation it is 50 per cent, for low-utilisation employees the salary cut is 75 per cent, and employees in the no-utilization category have been asked to go on leave without pay until June 2020, it added.

These pay-cuts applicable on the CTC excluding the PLB component, the letter said adding that these pay-cuts are temporary till June 2020.

When contacted, Yatra.com co-founder and CEO Dhruv Shringi told PTI: “We have undertaken cost cuts which are not restricted to only salary cost. Some people have been temporarily asked to proceed on leave without pay given the current scenario with the travel industry while others have taken a cut in pay. ”

The founders have taken a 50 per cent cut for the year. Cost cuts are the need of the hour for any company and especially those in the travel sector which has been one of the worst hit, he added.

“These are temporary measures and have been taken to avoid lay-offs. We continue to monitor the situation very closely and will take appropriate steps,” Shringi said.

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