Budget hospitality chain OYO on Wednesday said it has planned to restore full salaries of its India employees in phases extending until December 2020.
Effective August 1, the Gurugram-based startup will restore 100% salaries of employees who receive a fixed compensation of up to Rs 8 lakh, a spokesperson said.
The first phase of salary restoration will affect as many as 60% of the company’s employee base across India and South Asia.
For the remainder of employees, the pay cut percentage will be brought down from 25% to 12.5% in October 2020, the statement added.
Late April, the SoftBank-backed firm had announced a blanket 25% pay cut in the fixed component of salary for all its India employees. The company does not disclose its total workforce count.
Full pay, an addition of the remaining 12.5%, will be restored in December 2020, the statement added.
The company had also asked some of its employees in India to go on leave with limited benefits (LwLB) for a period extending from May to August. OYO is yet to reverse its decision on the furlough.
In June, the company announced $18 million worth of company stocks to employees, both active and furloughed, in a bid to support its employees.
The company, since December 2019, has undertaken large scale layoffs, furloughs and pay cuts, citing significant revenue loss due to the Covid-19 pandemic. Prior to the outbreak, the Ritesh Agarwal-led firm was en route an aggressive expansion through international markets such as the United States and China.