Festive Bonus And Increments Have Been Announced As Many Firms Rollback Sharp Salary Cuts
During the lockdown, several companies had announced sharp salary cuts and it increased economic burden on employees. For giving them relief, many companies are rolling back their salary cuts and announced festive bonuses for them
Festive bonus is expected to be given by lots of companies to their employees. This is going to be very relief giving to the employees who had to tolerate sharp salary cuts due to COVID-19 induced economic lockdown. It will be very helpful for the employees because they have faced a high financial burden in the previous 7 months.
Reliance Industries Limited is planning to roll back the salary cuts for the employees belonging to the hydrocarbons division. Not only this, but the company is also paying them a retrospective performance bonus that was delayed due to the lockdown caused by COVID-19.
This company declared that the employees will be benefited from advance 30% of variable pay from the next year’s salary. This amount will be offered to them for their efforts during the pandemic.
Reliance has cleared that this will not be the restoration of the original salaries of the employees but the employees will be paid a festive bonus for their performance. Not only Reliance but also many other firms are also giving bonuses to their employees so that they may fulfill the salary cuts which had been done during the lockdown.
Many tech companies like- Tata Consultancy Services, HCL, Wipro, and Infosys have announced their plans for rolling back the salary cuts.
Terms And Conditions For Festive Bonus
However, the process of unlock has smoothened the difficulties that were faced by all the firms during the lockdown because now they are open for customers to approach and they are now planning to reward their employees for their efforts during the pandemic as well as the salary cuts which ranged to 10 percent to even 50 percent of the salary.
The sectors which had performed well during lockdown like- medical and pharmaceutical, food and technology companies are expected to pay the increments and bonuses earlier as compared to the other industries. According to the financial experts, rolling back the salary cuts and payments of the pending increments to the employees will be on the basis of future business recovery.
Bonus and investments will be totally dependent on the performance of the company during the lockdown. It will depend on whether a company can tolerate additional costs or not.