New Delhi: As a number of industries are struggling to survive at this time of coronavirus pandemic, Reliance Industries on Thursday deducted the salary of employees by up to 50 per cent, the company said in a letter. Also Read - After Facebook-Jio Deal, Reliance Industries' Chairman Mukesh Ambani Becomes Asia's Richest Person
The move from the company comes as it fights the lower profitability in wake of the coronavirus epidemic across the country. Also Read - Mukesh Ambani's Reliance Industries Becomes First Indian Firm to Jump Rs 10 Lakh cr Mark on Market Capitalisation
Headed by Mukesh Ambani, the Reliance Industries decided that employees who are earning more than Rs 15 lakh ($20,000) per year will have to face 10 per cent salary cut, and senior executives will take salary cuts ranging from 30 per cent to 50 per cent. However, employees who are earning less than Rs 15 lakh per year will not see any reduction in their salary.
The move comes at a time when the hydrocarbons business of the company has been adversely impacted due to reduction in demand for refined products and petrochemicals. However, the Chairman of the company has agreed to forgo his entire salary.
In the letter, the Reliance Industries has also said that the annual cash bonus and performance-linked incentives have been postponed. These payments are generally delivered in the first quarter.
The Reliance Industries, which will announce its quarterly results soon, said that it would consider its first rights issue in almost 30 years as part of its broader commitment to eliminating net debt by March 2021. The company’s debt was about $43 billion at the end of last year.