Airtel and Vodafone Idea employees have received their yearly pay hikes or increments. As per reports, companies have paid an average of 7 to 8 per cent hike to the employees. The previous year has been particularly hard for the telecom companies, especially Vodafone. Airtel too has suffered losses but were significantly smaller than those of Vodafone Idea.
Vodafone Idea (VIL) suffered losses in India in 2022. The company reported a consolidated loss of Rs 29,297.6 crore for the fiscal ended March 31, 2023. Airtel also suffered losses in India in 2022. The company reported a consolidated loss of Rs 5,237 crore for the quarter ended March 31, 2023. Airtel’s losses were significantly smaller than those of Vodafone Idea. This is because Airtel has a stronger financial position and a more diversified business model.
According to a report by The Economic Times (ET), private telecom companies like Bharti Airtel and Vodafone Idea have given their employees salary increases of 7-8 per cent for the financial year 2023 (FY23). In addition, these companies have also awarded their employees bonuses of up to 110 per cent as they strive to attract and retain top talent in the company. However, the market leader, Reliance Jio, has not yet announced any salary increases or bonuses, as per the report’s sources.
An industry executive mentioned in the report that both Airtel and Vodafone have given their employees salary hikes of 7-8 per cent this year. Airtel offered bonuses of up to 110 per cent, while Vodafone Idea provided bonuses of up to 100 per cent.
It is worth noting that the salary increases this year are lower than what was anticipated. Experts in the industry had estimated the increments to be in the range of 10-12 per cent.
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Sachin Alug, the Chief Executive at NLB Services, explained the reasons behind the lower salary increases in the telecom sector to ET. He stated, “The low rate of increments is mainly due to telecom players primarily focusing on recovering to their pre-pandemic levels.”
The global economic outlook and the industry’s cautious approach are also factors contributing to the underwhelming salary hikes.Bharti Airtel and Vodafone Idea have given their employees salary increases of 7-8 per cent for FY23. They have also awarded bonuses of up to 110 per cent to retain and attract top talent. However, these salary increases are lower than expected, primarily due to the telecom sector’s focus on recovering from the impact of the pandemic and the cautious approach in the industry.
