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KPIT Technologies' employees face pay cuts of 10-50%

The pay cuts will be in the range of 10-50 percent from April to September

May 14, 2020 / 10:02 PM IST
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IT/ITeS firm KPIT Technologies said it will cut employee salaries as its business has been hit by the novel coronavirus, or COVID-19, pandemic. The Pune labour commission has issued a notice to the company regarding the same.

The pay cuts will be in the range of 10-50 percent from April to September. The company employs over 6,000 people.

In an email to employees, Kishor Patil, Group CEO, said, “The overarching approach, as stated earlier, is that of safeguarding jobs over maintaining individual salaries and levying significantly higher cuts for senior grades than those for junior grades.”

While the chairman will not draw any variable component, others will face a cut of 10-50 percent depending on one's job band. "Compensation structure will also be changed as variable pay and special allowance components will be deducted depending on your job band. Any remaining amount will be deducted from the fixed salary, the mail added.

Harpreet Saluja, National Information Technology Senate (NITES), an IT Union, said more than 200 employees have been asked to work part-time and their salary has been reduced by 50 percent.


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NITES has filed a complaint with labour commissioner, which has issued notice to the company. Moneycontrol has seen the copy of both the email and the notice issued to the company. KPIT Technologies did not respond to the email sent by Moneycontrol.

Earlier Tech Mahindra suspended its shift allowance for employee that accounts ranges from Rs 5,000 to Rs 10,000 per month. Employees were disappointed by this move and said it was unfair. For most, it accounts for about 20-25 percent of their salary.

Recently, Wipro started benching its employees in verticals including travel and hospitality.

According to hiring executives, the move will continue and there could be more in store.

Since the virus outbreak, some IT firms have asked employees to accept voluntary pay cuts. However, these are hardly voluntary as employees fear that non-compliance would lead to termination during these difficult times.

Wage hikes and promotions have been deferred indefinitely. Some firms have cut down travel allowance as well.

The executive pointed out that firms will continue to look at every aspect of salary structure and premium offerings would go away like shift allowances. The industry is already seeing job losses and hence people would be willing to work without a premium. So, doing away with shift allowance could become permanent.
Swathi Moorthy
first published: May 14, 2020 10:02 pm

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