NEW DELHI: Private carrier SpiceJet has reverted to a pay structure where it will pay employees based on the number of hours they work for the company.
Additionally, the airline is deferring May salaries, stating that Covid-19 has severely impacted the aviation sector.
Previously, SpiceJet had deferred upto 50 per cent of their employees’ April salary and, in May 2020, it had said that it would be paying salaries to all employees based on their work hours in the current month.
“Much like last year, the second wave of Covid-19 has hit the Indian aviation industry the hardest, but this time the impact has been much more severe especially on our industry. During this second wave the passenger traffic has fallen to less than 10 per cent as compared to the pre-Covid levels,” SpiceJet’s Human Resource department said in an email to its employees.
According to official data, the average number of daily fliers stood at 49,000 for the week ended May 30.
SpiceJet’s mail read, “Under these extreme and unavoidable circumstances which we are currently enduring, the company is reverting to the structure where employees will be paid according to the work hours contributed while maintaining basic thresholds.”
It added, “While the salaries for the month of May shall be credited to your bank accounts on June 1, there will be a graded deferment of up to 35 per cent for some of our employees. The deferred amount will be released from second week of June 2021 onwards.” However, salaries will not be deducted for employees in the lowest grade.
A pilot with SpiceJet, requesting anonymity, said that these new measures may severely bring down their monthly income since the second wave has impacted operations.
“My monthly salary was halved following a cut last year. These new cost cutting measures may further reduce my monthly earning,” he said.