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SpiceJet to pay employees based on work hours, defers up to 35% of May salary for some

During the second COVID-19 wave, passenger traffic has fallen to less than 10 percent as compared to the pre-COVID levels, SpiceJet told employees.

May 31, 2021 / 10:24 AM IST

In view of recent developments in the aviation sector and falling air traffic, SpiceJet has decided to revert to the structure where employees will be paid as per the work hours. The airline will, however, maintain basic thresholds while deciding the pay.

In an email addressed to all employees, the human resources said, "Much like last year, the second wave of COVID-19 has hit the Indian aviation industry the hardest, but this time the impact has been much more severe especially on our industry. During this second wave, passenger traffic has fallen to less than 10 percent as compared to the pre-COVID levels."

Read: A year after airlines came out of the 2020 lockdown, aviation looks wobbly again

SpiceJet said that under these "extreme and unavoidable" circumstances, the company is "reverting to the structure where employees will be paid according to the work hours contributed while maintaining basic thresholds."

It further said that while salaries for May will be credited to employees' bank accounts on 1 June, there will be a graded deferment of up to 35 percent for some.

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The deferred amount will be released from the second week of June, the company said, adding that employees in the "lowest pay grades will be unaffected by this deferment and their salaries will be paid in full".

The air traffic has once again taken a hit amid surging COVID-19 cases and restrictions on travel. Besides, the DGCA recently extended the ban on scheduled international passenger flights till June 30.

Read | Centre expands the scope of ECLGS to Civil aviation, removes loan outstanding ceiling for a few sectors

The Civil Aviation Ministry also capped the capacity for domestic flights from 80 percent to 50 percent, effective June 1.

"In view of a sudden change in the number of COVID-19 cases, and decrease in the number of passengers and reduced occupancy, the existing capacity cap of 80 percent is reduced to 50 percent," the ministry said in an order.

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Moneycontrol News
first published: May 31, 2021 10:24 am

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