Bahria Town announced up to 50% cut in wages of its employees

Thousands of its employees will face pay cut 

The largest property developer in Pakistan, Bahria Town has announced pay cuts for its employees due to a reduction in revenues as a result of the Covid-19 outbreak. Bahria Town has paid its employees reduced amount as wages after making cuts. The management has blamed the prevailing economic situation in the country as the result of lockdown and restrictions imposed by the government to contain the spread of coronavirus for making the cuts in the wages.

Bahria Town has nearly 20,000 (twenty thousand) employees and only low paid employees will be affected by this pay cut. 

According to a circular, those who are paid Rs 50,000 per month or less did not have any deduction, those who are paid up to Rs 100,000 per month had 20 per cent deducted while those paid up to Rs 300,000 and above had 40 per cent and 50 per cent of their salaries deducted, respectively. The deduction was applicable to all employees except those working in hospitals, the circular stated.

Prime Minister Imran Khan has urged industry not to cut jobs even as companies struggle due to the crisis created by the pandemic and the subsequent nationwide lockdown. Many private sector companies have decided to cut costs by reducing compensations to employees, among other measures, to face challenges faced by their businesses.

The circular issued by Bahria Town says that   “Please be informed that due to the prevailing situation of Corona outburst across the globe, business dynamics have changed dynamically. In order to cope with the economic challenge, the management of Bahria Town has decided the following criteria for the payment of salaries for the month of April 2020,” said a circular issued by the Bahria Town management on April 27, 2020.