10% Salary cut for employees announced by Kotak Mahindra Bank

Recently the bank, Kotak Mahindra has announced that they will cut the salaries by 10% for their employees who are earning more than INR25 lakh per year.

A famous website mentioned the communication stating-We have decided on a 10% reduction in cost to company (CTC) for all colleagues with a salary of more than ₹25 lakh per annum, with effect from May 2020 for FY21. Employees earning less than ₹25 lakh per anum will not be impacted,”

Previously on 29th March, the bank also donated INR 25 Crore to the Prime Minister citizen assistance and relief in emergency situation fund.

The memo stated – “Hence, we too need to re-calibrate our costs and operations, well in advance, to ensure sustainability of our businesses. We need to ensure that our colleagues are safe and do our best to protect their jobs,”.

On this, the bank said- “To this end, you will recall, the Kotak Leadership Team voluntarily surrendered 15% of their pay for 2020-21, and Uday Kotak chose to take only a token salary for the year.”