Reliance Industries Cuts salaries by 10-50%

Mumbai: With coronavirus lockdown hitting businesses hard, India's largest company Reliance Industries has decided to cut the salary of most of its employees by 10 to 50 per cent with firm's Chairman and richest Indian Mukesh Ambani agreeing to forgo all his remuneration.

Also, the oil-to-technology conglomerate has deferred annual cash bonus and performance-linked incentives that are normally paid in the first quarter, according to an employee communique. The nationwide lockdown that began on March 25 had led to evaporation of demand.Reliance's hydrocarbon business was adversely impacted due to a reduction in demand for refined products and petrochemicals.

While Ambani will forgo his entire Rs 15 crore compensation, Reliance board of directors including executive directors, Executive Committee (EC) members, and senior leaders will forgo 30 to 50 per cent of their compensation. Employees with compensation of less than Rs 15 lakh will have no reduction in compensation but those earning higher than that could see a 10 per cent reduction in fixed pay.