No salary cut during lockdown, carmakers hand out pay hikes and promotions to workers

Mumbai | New Delhi: Carmakers didn’t reduce salaries or sack employees when the lockdown hit them and as demand is revving up post-lockdown, they are handing out increments and promotions.Toyota Kirloskar has announced pay hikes for non-unionised workers. Hyundai Motor India has raised wages for factory workers and will soon do the same for executives. Market leader Maruti Suzuki is likely to release bonus and incentives over next two months. And MG Motor is expected to announce pay hikes sooner than previously planned. Honda, Toyota and Renault have given 4-14% pay hikes, depending on the base salary and position.ET spoke to HR heads and other industry executives. Ten of the 14 carmakers have paid bonuses and incentives while half a dozen have already given or are soon giving promotions. But some carmakers are not giving increments, while paying out bonuses and variables.Rajeshwar Tripathi, chief HR officer at Mahindra & Mahindra, told ET that the company had decided that there would be no salary cuts at any level and that it was releasing performance pay and promotions as usual. But there will be no salary hikes this fiscal, he said.Auto demand post-lockdown is being driven by peoples’ preference for personal mobility over public transport. A majority of carmakers have touched 85% of pre-Covid sales levels. Companies don’t want to lose skilled employees as and when the economy gets back in full gear, and are therefore paying out bonuses and/or increments.

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