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The Wall Bureau: On April 29, Reliance Industries issued a salary reduction notice to its employees. The agency, headed by Asia’s richest man, Mukesh Ambani, said wages could be cut by as much as 50 percent. Employees who earn more than Rs 15 lakh a year will receive 10 percent less salary. Senior executive salaries will be cut by 30 to 50 percent. Workers earning less than Rs 15 lakh a year will not be deducted.
The company’s notice said: “The hydrocarbon business has suffered significantly. Now we have to reduce the operating cost and the fixed cost.” Referring to Mukesh Ambani, it has been said that our President will have no salary. At the same time, Reliance Industries has stated that the annual cash bonus and incentive allowance will not be awarded this year.
“Our agency is now monitoring the financial and business situation,” the Reliance notice said. In this situation, you are thinking about how to increase your income.
At this time it is unknown what he will do after leaving the position. However, according to a source, Reliance Jio Infocomm will likely not have a pay cut.
Observers believe that other companies may also cut their wages as a result of the epidemic. The financial crisis will force them to make that decision. According to Fitch Ratings, India’s economy will grow to just 0.06 percent in 2020-21.
In the previous financial year, India’s gross domestic product (GDP) grew 4.9 percent. But the growth rate in the current financial year is hard to beat above 0.06 percent. The growth rate is expected to increase again in fiscal year 2021-22. At that time, Fitch’s rating estimates that India’s economy will grow at 7.8 percent.
Economists fear India’s economic growth will be negative in the next two quarters. The April-June quarter will grow minus 0.02 percent. The growth from July to September will be less than 0.01 percent. In the last quarter of the last financial year, between January and March, growth was 4.4 percent.
The growth rate is expected to increase somewhat in the last quarter of 2020. According to Fitch’s rating, GDP will grow to 1.4 percent. There are two reasons for the slowdown in growth. First, in 2021, sales of consumer goods increased just 0.03 percent. It increased by 5.5 percent last year. In addition, investment has decreased by 3.5 percent this year.
