Kotak Mahindra Bank declares 10% pay cut for staff with over Rs 25 lakh annual salary
Private sector lender Kotak Mahindra BankNSE 2.55 % has decided on a 10 per cent pay cut for the employees earning above Rs 25 lakh per annum, in a business sustainability move amid the Covid-19 pandemic.
The move comes weeks after the top management voluntarily surrendered 15 per cent of their payments for 2020-21.
The COVID-19 crisis is expected to have a heavy impact on the economy and many corporates have been cutting salaries. Some have also retrenched staff, with the unorganised sector being hit the most. The unemployment rate in India touched 27 per cent in the week to May 3, according to think-tank CMIE.
What seemed like a 2-3 months phenomenon in the beginning has turned out to be a pandemic with serious implications on both lives and livelihood. More importantly, it is increasingly clear that the pandemic is not going away anytime soon impacting the economy negatively.