Most experts agree that scheduled pay increases may be pushed back and re-considered upon with ‘retrospective effect'
Employees across sectors may have to brace for comparatively lower increments and bonuses as businesses reel under the impact of the coronavirus outbreak.
As social immobility suspends daily work patterns, the overall approach by employers seems to be of 'wait and watch', especially in sectors such as aviation, hospitality, travel and tourism, experts told The Economic Times.
Apart from the travel and associated industries, sectors that depend heavily on imports from China and asset management companies are vulnerable, while pharmaceutical companies and professional service companies are expected to remain unaffected, the report said.
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Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Delay in increments by at least quarter is likely as employers anticipate a tough environment and would want to monitor the situation before making a call, Arvind Usretay, director, rewards of risk management advisory Willis Towers Watson told the paper. The current scenario may thus lead to conservative bonus payouts at later dates, he added.
Most experts agree that scheduled pay increases may be pushed back and re-considered upon with ‘retrospective effect.’Ajay Shah, vice president of recruitment services, TeamLease told the paper the average hike for employees in FY20 would now be much lower than the expected 9.1 percent.