This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/airtel-salary-hike-delay-agr-verdict/280196/, Bharti Airtel Delays Salary Hikes to Employees Citing AGR Verdict
Bharti Airtel has announced that it will pay performance bonuses to employees. However, the telco has clearly stated that salary hike will be deferred until the situations become normal and business is back in the routine. Since the outbreak of COVID-19 disrupted the entire telecom industry, Bharti Airtel halted the salary hike of nearly 15,000 employees. Another major reason for the deferred salary hike is the massive AGR dues. Bharti Airtel is waiting to hear from the government and supreme court regarding the decision of deferred payment of AGR dues over 20 years. As reported by ET Telecom, Bharti Airtel might take the call on employees increment towards the last quarter of the financial year.
Airtel Reported Net Loss of Rs 5,237 crore in January-March Quarter
In the January-March quarter, Bharti Airtel reported a consolidated net loss of Rs 5,237 crore. The major contributing factors for the loss are the higher finance costs, write-down on 3G gears and many more. The ongoing COVID-19 crises are also troubling the telco giant financially.
Reliance Jio Will Likely Announce Performance Bonuses in August
Reliance Jio is having an amazing year. The largest telecom operator in India has closed deals from various global investors, and it has now become debt-free. It is expected that Reliance Jio will roll out performance bonuses in August. Not only this, but the telco might also give increment to top performers later this year.
Vodafone Idea Might Not Roll Performance Bonuses or Increments this Year
Vodafone Idea is the most affected telco because of the massive AGR dues. As per DoT estimates, Vodafone Idea has to pay Rs 58,254 crore out of which the telco has just paid Rs 6,854 crore. Earlier when the supreme court asked the telecom operators to submit an affidavit regarding payment of AGR dues, the counsel of Vodafone Idea stated that it does not have the adequate cash flow to meet operating expenses and pay employees salaries. It is expected that Vodafone Idea will not roll out performance bonuses or increment this year for nearly 11,000 employees.
Original article: Bharti Airtel Delays Salary Hikes to Employees Citing AGR Verdict
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