For employees who had to bear the brunt of salary cuts since the Covid-19 outbreak, may finally be able to ramp up their finances as economic activities pick up and some companies start restoring salaries in a graded manner to achieve pre-Covid-19 levels before November.
According to a report by Economic Times, these firms include auto component makers Lumax Industries and Sandhar Technologies, edtech firms Upgrad and Toppr, construction equipment giant TIL, interior design and home decor company Livspace, engineering major Forbes Marshall and Deki Electronics.
While worker wages are being restored on priority, export companies are still in a wait-and-watch mode before reinstating salaries of their top management.
According to a survey by Aon India on HR practices of over 2,000 companies globally and 425 in India, about 12 per cent of companies have already restored salaries and another 20 per cent have announced or will announce it shortly.
Many companies, across sectors, had implemented pay cuts ranging from 5 per cent to 50 per cent and some even retrenched staff during the nationwide lockdown in April. Now, the situation has improved and while some companies want to boost the morale of their employees, others are hoping this will help boost consumption.
In the auto component industry, where wages were cut by an average of 30 per cent, they have been restored by 10 per cent each month since August, when demand started picking up. Salary restoration is more prominent in the technology sector, according to Deloitte India.
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