New Delhi: In a relief for the employees of its hydrocarbons division, billionaire Mukesh Ambani-led Reliance Industries is rolling back salary cuts and is also giving out performance bonus that had been deferred after business was hit by coronavirus lockdown. The firm is also offering an advance 30 per cent of the variable pay from the next year’s salary to its lakh-plus employees as a goodwill gesture for working during the pandemic, two persons familiar with the matter told news agency PTI. Also Read - Saudi Public Investment Fund to Invest Rs 9555 Crore in Reliance Retail Ventures
Notably, Reliance in April had cut the salary of employees of its hydrocarbons division by 10 per cent to 50 per cent with the firm’s chairman and richest Indian Mukesh Ambani agreeing to forgo all his remuneration. Also Read - Mukesh Ambani Loses $7 Billion as Oil Sinks Reliance Shares
Also, the oil-to-technology conglomerate had deferred annual cash bonus and performance-linked incentives that are normally paid in the first quarter. Sources said Reliance may have done some intra-division cash transfer to roll back the salary cuts in the hydrocarbons divisions. Also Read - Reliance Retail Will Enforce Its Rights and Deal With Future Group Without Delay: RIL
An email sent to the company for comments remained unanswered. Reliance’s hydrocarbon business was adversely impacted due to a reduction in demand for refined products and petrochemicals after a nationwide lockdown was imposed to curb spread of coronavirus.
While Ambani forgo his entire ₹15 crore compensation, Reliance board of directors including executive directors, executive committee members, and senior leaders saw 30 per cent to 50 per cent of their compensation. Employees with compensation of less than ₹15 lakh did not have any reduction in compensation but those earning higher than that saw a 10 per cent reduction in fixed pay. While the salary cuts of employees have been restored, it isn’t clear if Ambani’s remuneration has also been restored.
(With agency inputs)