Mid-sized IT firm Hexaware Technologies on Wednesday said it has cut the salaries of about 350 employees, who are currently on the bench, as part of its cost control measures. The reduction in salary would entail a cut of up to 50% from the basic pay.
In addition, employees above a certain designation will take salary cuts ranging from 2-10%, said the IT firm in a statement.
The company also plans to give the 350 employees ‘time-off’ to improve their skills and get re-trained, which are in demand. It will also organise re-skilling and training opportunities for these employees and continue to give them provident fund and gratuity benefits, as well hospitalisation insurance and life cover, added the statement.
“The employees will continue to be on the pay rolls of Hexaware, while the organisation will continue to identify opportunities for them and identification of projects, absorb them into the mainstream,” said the company.
Hexaware is the second IT company to effect what is now being termed as a ‘virtual bench’ concept. Before this, another mid-size IT firm Mastek had put employees, who were not billable, on reduced salaries equivalent to their severance pay for one year.
Apart from introducing a virtual bench, Hexaware will also reduce salaries for all the staff, barring those with less than three years of offshore experience. As a result, salaries of about 40% of employees will be unaffected, according to the company.
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