According to the report published by inc42, a global ed-tech company, BYJU’S has reduced the fixed salaries of new Sales hires by 90%.
The fixed monthly salary for inside sales associates will be around INR 10,000, down from INR 35,000-INR 40,000 from December 2023.
Offer letters issued to inside sales associates show a total annual compensation of Rs 4 lakh, including variable pay, according to the report. The letters detail a fixed pay of Rs 1.15 lakh per annum and a performance-linked variable pay of up to Rs 2.8 lakh per year.
Harpreet Singh Saluja President, Nascent Information Technology Employees Senate said, “NITES strongly condemns the unethical pay structure being enforced by Byju’s. The current salary structure is a glaring example of how crony capitalism can have a detrimental impact on IT workers in India.”
“The way BYJU’s is structuring salaries is not at all fair to employees. It prioritizes company profits over workers’ well-being. This is a common problem, especially in new tech companies. These companies rely too heavily on bonuses that aren’t guaranteed, leaving employees with the risk of not having enough money to cover their bills”, he added.
He further said, “A fixed salary of ₹115,188 is simply not enough to live on in many Indian cities. With this kind of salary and the uncertainty of bonuses, employees, especially those with families, are in a tough spot financially. This race to the bottom in pay hurts everyone.”
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“It discourages talented people from working in IT and pushes them to look for jobs in other countries where they’ll be valued more. The government needs to take stricter measures to ensure IT companies adhere to minimum wage guidelines and offer fair compensation structures that prioritize worker’s well-being”, he added.
BYJUS is offering fixed pay of Rs 1.15 lakh per annum to inside sales associates while the variable pay is Rs 2.8 lakh . We sourced the offer letters https://t.co/SL6Rv3BCVA pic.twitter.com/0iC9Y8O3tt
— Bismah Malik (@bismahmalik) June 6, 2024
Amidst a financial crunch, the ed-tech firm recently tied sales staff salaries to the weekly revenue they generate, making their earnings dependent on their performance and the company’s financial health.
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