India’s airline, SpiceJet has announced a 20 percent salary hike for its pilots from October this year onwards.
According to an internal mail to all the pilots, Senior VP, Gurcharan Arora said, “The Spicejet has received the approval for a loan under the government’s ECLGS scheme.”
“The first tranche of the payment has already been received and the second tranche is expected very soon. Our management is working to raise an additional 200 million dollars”, Gurcharan Arora added.
The first tranche of the Emergency Credit Line Guarantee Scheme (ECLGS) payment has been received by the airline, and the second is expected shortly. This follows last month’s 6 percent hike in salaries.
Moreover, the company will be depositing the TDS of all employees in the next two-three weeks. And, a significant portion of the PF will also be credited.
Recently, The company has been in the news of late for all the wrong reasons. SpiceJet has announced that it had made the temporary decision to put 80 pilots on leave without pay (LWP) for three months.
This move has been taken into consideration to reduce costs. The pilots who have been forced to go on leave without pay are from the airline’s Boeing and Bombardier fleets.
The airline said, “In a temporary measure to rationalize costs, SpiceJet has decided to place certain pilots on leave without pay for a period of three months.”
“This measure, which is in line with SpiceJet’s policy of not retrenching any employee which the airline steadfastly followed even during the peak of the Covid pandemic, will help rationalize the pilot strength vis-a-vis the aircraft fleet,” the airline added.
The airline has earlier delayed August salaries. It is yet to give employees Form 16 for fiscal 2021-22 due to which they are facing issues in filing tax returns.
SpiceJet employees have also claimed there was a delay in disbursal of July month salary for staff. The employees have often faced stress issues due to financial irregularities.