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40% Employees Witness Reduction In Total Pay Due To COVID: Survey

40% Employees Witness Reduction In Total Pay Due To COVID: Survey

About 40 % of the employees in India witnessed a reduction in their salary due to COVID-19, according to the Grant Thornton's 'Human Capital Survey".

 

The findings further revealed that around 45% did not see any change in overall pay over the past year.

 

The survey was conducted over 16,700 respondents across sectors, including consumer, retail, e-commerce, financial services, manufacturing, automotive, pharmaceuticals and healthcare, among others.

 

While the total pay decreased for 40% respondents, a temporary reduction in fixed pay was experienced only by 16% of employees.

 

However, the survey claimed that there was a trend of decrease in the variable pay or performance pay component with over 31% of employees receiving no variable pay, 33 per cent experiencing a decrease in variable pay.

 

Grant Thornton Bharat Partner (Human Capital Consulting) Amit Jaiswal stated, "While one-third of the respondents experienced a reduction of over 20 per cent in their fixed pay, 40 per cent did not see any change in fixed pay despite an overall decrease in their earnings. This highlighted that the variable pay component of the salary took a major hit."

 

"There is an increased expectation to change the current pay mix and reduce pay-at-risk part of the compensation, specifically in the younger workforce of mid-size organisations," he added.

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