Jaikrishna B, Group President (Group HR), Amara Raja Group, said that the BPLP initiative is a step towards creating a win-win solution for individuals and organizations.

Hyderabad: As a result of COVID-19 Amarara, Raja Group, a leading conglomerate spanning across multiple industries, on Wednesday announced that the salaries of junior and senior executives will be reduced in the coming months. After reopening and restoring them to the required levels, they will be refunded to the employees under the Business Performance Pay Reduction (BPLP) in the next financial year.

According to information provided by the Group, the total number of employees is approximately 16,000, of which approximately 20% have been subject to pay reductions.

According to last year’s annual report of the group’s flagship company, Amara, which had 7,541 employees, including temporary staff, as of March 31, 2019, the cost of salaries and other benefits stood at Rs 345.23 million.

In view of the exceptional circumstances and uncertainties in the business environment, Amara Raja, Group Promoter and Managing Director of the entire business, has voluntarily agreed to reduce the total salary by 50% for the current financial year.

The group also said that salary increases and adjustments for all categories of employees will be deferred for the current financial year.

“We have decided to restructure the existing CTC in a phased manner to provide 10-25% incentives to employees and managers.

This applies to both junior and senior levels and the reduced amount will be restructured to include Business Performance Linked Pay (BPLP) in the monthly salary structure for the remaining 10 years of FY 2020-21.

The impact of migrant labor issues, additional precautionary measures and social alienation norms have become the new normal with the repeated extension of the blockade and the rigorous restructuring of business reopenings. The Group expects a decline in demand, market volatility and consequent uncertainty for some customer segments. Do.

“The announcement of an innovative pay structure linked to business performance is a step towards creating a win-win situation for both employees and the business.

The plan is aimed at compensating employees in the next financial year once the business recovers to the required level, Amara Raja sources told PTI.

The organization wants the economy to bounce back soon, but the management must do everything possible to keep the debt low.

Jaikrishna B, Group President (Group HR), Amara Raja Group, said that the BPLP scheme is an initiative to create a win-win situation for individuals and businesses.