Have Plans This Festive Season But Short on Money? Firms are Restoring Salaries to Pre-Covid Levels: Report

Many companies, across sectors, had implemented pay cuts ranging from 5 per cent to 50 per cent and some even retrenched staff during the nationwide lockdown in April. Now, the situation has improved and while some companies want to boost the morale of their employees, others are hoping this will help boost consumption.

In the auto component industry, where wages were cut by an average of 30 per cent, they have been restored by 10 per cent each month since August, when demand started picking up. Salary restoration is more prominent in the technology sector, according to Deloitte India.