Grappling with the problem of decreasing margins, most of the employees of telecom sector may not see any jump in their salaries this year. It could be a tough year for telecom sector employees, as the sector has been going through a fall in revenues due to stiff competition after entry of Reliance Jio in the market.
According to a report in The Economic Times, 30-40 percent telecom employees may go without a raise. Even the bonus part may get hurt as there are estimates that it would be paid up to 50 per cent.
The telecom industry has been going through a tough phase as a result at least one lakh employees have been asked to go in the past 16 months. Due to the ongoing tariff war, telecom operators have been struggling with reduced margins.
Navnit Sinha, chairman of search firm Korn Ferry was quoted as saying, “ At least 30 percent of the employees may see no increment this year and there will be a fall in their bonuses as the industry has a large talent pool available without jobs and those employed cannot call the shots.”
Since Reliance Jio has marked its entry into the telecom industry, the sector has been going through a tough tariff war.
Rajan Mathews director general at Cellular Operators Association of India (COAI) was quoted as saying, “The past one year has been a difficult period and as a result, about 40 percent of the work force may not get a raise, and even if they do, it will be a marginal one.”
This is the part of the year when appraisal process gets started followed by increments being given by the month of June. Around 30-40% of salary comprises of bonus amount for senior level employees. For the middle and junior level employees bonus generally constitutes around 20 to 10 percent of the total salary.