Cutting of Salaries in Indian Companies - Failed Future?

[so98nn]

Recently, India has completed 15 days of complete lockdown and now our employers have started ciruclating the comunication where we are told that there will be cut down in the salaries according to the % slab as follows :




** The values are in $
*** The values are converted from INR to USD per annum range

Looking at the cutting figures it can be seen that no employee is gonna be happy to receieve what they are goign to get.

The fact is most of the employees are still working from the home being IT personnel.

However, this doesnt change the fact that we still have to pay our EMI's, Daily food and home expenses. The life is still breathing but the money is substantially gone down.

Now everyone has to "adjust" their life with minimal money and look for the future plannings. As we do not yet know how and what the situation be in the upcoming days, this is serious matter up front.

[Darker45]

This is unfortunate, of course. But on a wider horizon, I guess these people who are still receiving a portion of their salaries are still very much lucky considering that a great many workers right now are totally deprived of their regular salaries. And many of the workers who are not receiving their wages anymore are mostly those who are too dependent on it for their daily needs.

Looking at the table, if the value is indeed in USD, those workers whose salaries will have a cut belong to those who have really nice paychecks. Even the lowest category with an annual income of 0.12 - 0.2 million USD per annum has a monthly salary of at least 10,000 USD. Or did I get this right?

[Solosanz]

Hi,
About this pandemic, many country is implementing about salary cutting to make the company still survive from lockdown.
It's bad news for people who still work, but get salary cutting is more good than lost a job.

[exstasie]

Indian public officials are at least subjecting themselves to some austerity measures too. The PM, all ministers, and sitting MPs are taking a 30% pay cut for one year.

Looking at the table, if the value is indeed in USD, those workers whose salaries will have a cut belong to those who have really nice paychecks. Even the lowest category with an annual income of 0.12 - 0.2 million USD per annum has a monthly salary of at least 10,000 USD. Or did I get this right?

It does appear that way.

[UserU]

This is unfortunate, of course. But on a wider horizon, I guess these people who are still receiving a portion of their salaries are still very much lucky considering that a great many workers right now are totally deprived of their regular salaries. And many of the workers who are not receiving their wages anymore are mostly those who are too dependent on it for their daily needs.

Looking at the table, if the value is indeed in USD, those workers whose salaries will have a cut belong to those who have really nice paychecks. Even the lowest category with an annual income of 0.12 - 0.2 million USD per annum has a monthly salary of at least 10,000 USD. Or did I get this right?

Not necessarily. Most, if not all SMEs (Small and Medium Enterprises) are heavily affected by this turn of events and many from the bottom income group either had their paychecks cut or retrenched. Worse are the ones that quitted, recently joined and then had to be "axed".

[squatz1]

I mean what do you want to happen in a time of economic crisis? Not everyone can be paid every single dollar of what they received before, as there is no money being circulated in the economy to support that. Businesses shouldn't be required to pay their employees when they need to lay them off. That's going to be left to unemployment insurance to handle.

Every country in the world is doing this right now. Not surprising.

[avikz]

Recently, India has completed 15 days of complete lockdown and now our employers have started ciruclating the comunication where we are told that there will be cut down in the salaries according to the % slab as follows :




** The values are in $
*** The values are converted from INR to USD per annum range

Looking at the cutting figures it can be seen that no employee is gonna be happy to receieve what they are goign to get.

The fact is most of the employees are still working from the home being IT personnel.

However, this doesnt change the fact that we still have to pay our EMI's, Daily food and home expenses. The life is still breathing but the money is substantially gone down.

Now everyone has to "adjust" their life with minimal money and look for the future plannings. As we do not yet know how and what the situation be in the upcoming days, this is serious matter up front.

From where did you get this news? Can you please share a credible source? Because as far as I know, not all companies are going to do that. So don't generalize things here!

I believe there will be certain companies where such kind of deductions will be seen because their businesses have received a serious hit. Especially in production or heavy engineering sector.

But I believe it is stil a blessing because these people are not thrown out of jobs. That would have been a serious problem then.

Personally I feel that, a person with 10+ years of experience, positioned at the middle management of a large company, earning more than 1.5 million "INR" per annum, with home and car loans - will be happy with this salary deduction if the job is secured. Trust me, I have seen jobless life during demonetization!

[Harlot]

We need more information about this matter regarding if this covers all companies or just businesses with clue collar type of work since they can't just cut down salaries if some of their employees are producing work from their home. The lockdown itself cannot be the reason why their salaries would be cut not unless their financials are affected but when you are saying that even IT companies have their employees take salary cuts I couldn't imagine this from happening since their business products are mainly produced digitally so their financials won't really be affected.

[akram143]

Most of the people in India doesn't make anything in the lockdown days so from their views it will be okay to receive reduced pay.

But don't forget most of the companies operating in India are not from India, its overseas companies working in India on many cities and we know what is the situation around the world so just be happy if you are making something.

[Harlot]

I did some more research just now and what I have seen is they are not forcing their employees to have salary cuts and they should agree with it first, the catch is if majority of their employees take the salary cut then the survivability of the company will be at risk when most of their businesses are not operating. This is just the reality of what they have now and if this 21 day lockdown got extended we might even see some more worst effect than salary cuts. Like what I have said lay offs during this lockdown is not far from happening and that's why their first step was to make salary cuts. The Prime Minister of India already have his salary cut and some top executives of Big Indian Corporations also have theirs so if things get anything worst I know downsizing will be the next thing to happen.

[bkbirge]

So the low end of the salary range there starts at $120,000 USD? I don't buy that. Maybe the OP may have mis-converted some numbers? 1 INR = 0.01 USD.

[avikz]

So the low end of the salary range there starts at $120,000 USD? I don't buy that. Maybe the OP may have mis-converted some numbers? 1 INR = 0.01 USD.

No! The low end salary range is much lower. But what OP meant to say is that, these segment of people will face the salary reduction. But don't believe in this entire news because I don't see any credibility in that! Rather, I heard that Cognizant is going to increase the salary by 25%.

[uray]

So the low end of the salary range there starts at $120,000 USD? I don't buy that. Maybe the OP may have mis-converted some numbers? 1 INR = 0.01 USD.

If that is the real salary range i would gladly move to India  . I wonder majority of the population are under this salary range, i understand that there are many wealthy people from India but that is a relatively small population considering the billions of people living in India. If these salary cut is real that only the ultra rich are forced to cut their salary then it is not a big deal.

[Wenbing]

I sense economic downtown due to this development in India.
A 45% slash of the salary of an employee is almost a decline of half of the salary.
Economic variables are in tandem , that is, they move in same direction. Food prices will experience an increase while the disposable income is decreased causing an inflation of almost every product.

The way out is to think outside the box. Employees  can plan learning new skills that'll help them to complement their income level.
 

[akram143]

So the low end of the salary range there starts at $120,000 USD? I don't buy that. Maybe the OP may have mis-converted some numbers? 1 INR = 0.01 USD.

If that is the real salary range i would gladly move to India  . I wonder majority of the population are under this salary range, i understand that there are many wealthy people from India but that is a relatively small population considering the billions of people living in India. If these salary cut is real that only the ultra rich are forced to cut their salary then it is not a big deal.

So it seems there is a mis calculation, people who are not making in millions via salaries,maybe there are single digit figures in the whole countries and all other rich people making through business so this salary reduction doesn't make any sense.

[el kaka22]

I seriously doubt cutting the income is actually a way to deal with this coronavirus and the economical trouble it is bringing.

I am not against people who are making 1+ million to give more money, they are after all living in a nation where most people do not make that much money in a decade, so it is understandable that the rich folk should give up some, but the lower it gets the worse it gets, people who are making less money should not be the target, I think if it was only 1+ million dollars and salary cutting, and stop there, it would have been quite fine.

I am not waging a war against the rich but honestly it is needed at this time when everyone is living miserably to get some money from the rich and give it to poor robin hood style, that is what will recover the economy.

[posi]

The cutting of salaries will definitely hurt the workers but it still a good decision because the fund is meant for a purpose that will benefit every individuals and i also believe that the workers who have the chance of working online are still lucky because some people don't have the chance to work at home now not to talk about receiving any salary. Besides, i dont see anything bad in it if the fund is use properly and if the government,agencies etc salaries are also cut.

[fabiorem]

Blame the hysteria from getting a simple cold.

What is happening today is a lesson on the harmful effects of hypochondria.

[dothebeats]

If you belong to those salary brackets(which you mention are in USD), you must have been living a good life in order to take home $10000 or above per month, and knowing cost of living in India, that is definitely a lot. Don't get me wrong, I hate to get my paycheck cut by such a large percentage, but if I were receiving those in a month, I'd definitely be happy to sacrifice and do my part for at least a few months instead of seeing other people perish. Perhaps not other people are like me in terms of charity but in times like these, money not that important if there are no stocks in the shelves of supermarkets and/or other stores. Also, the ones affected by the said price cuts are on the higher-end of the working class: managers, executives, IT honchos etc and not really the middle-class or those who are in the poverty line, so it's not really hitting hard IMO.

Given the current situation of the world today, the economy is in turmoil and essentially paralyzed for the time-being. Commodity prices are being frozen on where I'm at, plus the only expenses people have to worry right now is just food, med supplies and rent, since power and other things are suspended by most governments for consideration. If an employee still lives like a king in times like these, then they should not blame the government for doing the necessary thing of cutting salaries down. Besides, it's just temporary and everyone in the whole world is affected and not just you guys on the upper-ends of the spectrum.

[snipie]

There should be a minimum wage for everyone even those who are not working from home. If employers cannot afford to pay then the gov should do this. Other possibility is to cut that price from next salaries...
If someone is doing 100% of his regular job from home then he should receive 100% of his salary (i know some are receiving less ~80%), if he is doing less then he normally should receive less. There should be an agreement between the boss and employees about that if it wasn't done before!!