SpiceJet delays salaries for second straight month, payments made in ‘graded format’

SpiceJet employees raised concerns on Wednesday about a second consecutive month of salary delays, while the budget airline attributed the situation to a “graded format” for payment disbursement. For July, staff, including flight crew, reported a delay in salary disbursal, and some are still awaiting Form 16 for the financial year 2021-22.

According to SpiceJet employees, while June’s salary disbursal was timely, salaries have yet to reach pre-COVID-19 levels. The amounts being disbursed to captains and first officers are reportedly less than 50% of their pre-pandemic levels before the outbreak in March 2020.

In response, SpiceJet issued a statement asserting that salary disbursement had commenced in a “graded format” and that payments were underway. The airline emphasized that this approach aligns with the previous month’s payment structure.

In an internal communication, SpiceJet’s Human Resources team explained the delays, citing recent challenges such as the “superlative fuel price hike” and the historically lean period of July-September. The airline anticipates relief with the reduction in fuel prices effective August 1 and expects strong passenger demand as the traditional robust season approaches in late September.

Despite these optimistic projections, the communication acknowledged the need to overcome challenges and milestones in the face of the adverse business environment. As a result, salaries for August will be released gradually, starting at the end of August and continuing until mid-September, similar to the approach taken in the previous month.

In recent months, several pilots have left SpiceJet due to the ongoing pandemic and persistent irregularities in salaries. This departure includes first officers and captains of the Boeing 737 fleet. The challenging financial conditions, including discrepancies in provident fund and tax-related matters, have contributed to the pilots’ decision to leave the airline. Some have noted that salaries, which are now one-third of what they received three years ago, led to increased tax burdens without corresponding benefits in their pay. Pilots and flight crew members have consistently highlighted stress issues stemming from these financial irregularities.