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PT GARUDA Indonesia confirmed the existence of a policy to cut employee salaries during the corona virus pandemic (COVID-19). This salary deduction is done to maintain the continuity of the company’s business amid the sluggish aviation industry.
According to the President Director of PT Garuda Indonesia (GIAA), Irfan Setiaputra, said GIAA adopted a policy to cut the salaries of employees and directors in the midst of the COVID-19 pandemic. This is known based on Circular Letter Number JKTDZ/SE/70010/2020 concerning Terms of Take Home Pay Payments Regarding the COVID-19 Pandemic Conditions.
“The directors are forced to take steps aimed at maintaining the sustainability of the company, one of which is by cutting take home pay payments. For directors, salary deductions are set at 50%. The take home pay will be cut from April 2020 to June 2020, which is done in stages,” said Irfan.
He added, quoted from the 2018 Garuda Indonesia Financial Report, the total amount of salaries and remuneration of directors was set at 2,145,575 or IDR33.14 billion (exchange rate of IDR15,444). Currently there are eight directors of Garuda Indonesia, if divided equally by each member of the board of directors, then each one of the directors receives a salary and remuneration of IDR4.14 billion per year or IDR345.2 million per month.
“While with a 50% salary deduction policy for Garuda Indonesia officials, if the assumptions of the average salary and remuneration of the eight directors are the same, the salary received by each director is IDR172 million,” he noted.
Irfan explained, while for Garuda Indonesia employees, the amount of the percentage of deduction was set in stages according to category. For Vice President, Captain, First Office and Flight Service Manager 30%. Then, for Senior Manager 25%. Flight Attendant, Expert and Manager by 20%.
“As for the holiday allowance (THR), the company will continue to give it to the amount before the deduction in accordance with government directives. Withholding payments is only a delay. The company will return the accumulated deductions when the company’s condition is deemed possible,” he said
Previously, Irfan Setiaputra said that the deduction of employee salaries was implemented to ensure the company’s business sustainability was maintained amid pressure from the performance of the world aviation industry caused by the COVID-19 pandemic.
“Salary deductions are carried out proportionally from the level of directors to staff from 10% for the staff level to 50% for directors,” said Irfan.
Irfan explained, this salary deduction is the best choice that can be taken by the company in the midst of operational performance challenges that have an overall impact on the aviation business line.
“We take this policy with very deep consideration of the current condition of the Company which we believe can and will continue to survive through a period that is less favorable for the aviation industry, so that it is ready and able to return to running operational services optimally going forward,” Irfan added .
He pointed out, as a national flag carrier, Garuda Indonesia was committed to continue to operate to support the needs of the community both from logistics services and flight operations. Garuda Indonesia must consider various things to ensure the company continues to perform optimally.
“We can be sure that this salary deduction is a delay, the company will return the accumulated deductions when conditions allow, in line with the Company’s future performance. As for the THR policy, we will still give it according to the applicable regulations,” he concluded. [kontan.co.id/photo special]
