Singapore Airlines to cut salaries by at least 10%, offers early retirement for eligible staff

SIA is taking more steps to manage costs, announcing further pay cuts for management staff and a salary reduction of 10% for other employees. The airline will cut of the full quantum of the monthly variable component of salaries from Aug 1. "This amounts to 10% of the basic salary for all staff below the level of manager, said SIA Thursday. Managers and senior managers will have their basic salaries reduced by 12%, up from 10%, while vice-presidents and divisional vice-presidents will see a 15% cut, up from 12%. Senior VPs will get a 25% cut, up from 20%, and executive VPs will get 30% cut, up from 25%. CEO Goh Choon Phong's salary will be cut by 35%, up from 30%. This comes as SIA posted a S$1.12b net loss in Q1, after drastically cutting capacity due to travel restrictions amid the COVID-19 pandemic. Apart from cutting salaries, the airline will also offer a COVID-19 Special Early Retirement Scheme to eligible employees. According to an email to SIA staff, the scheme will be available to those aged 50 and above and with at least 15 years of service, up to the level of divisional VP. “Given the slower growth trajectory and depressed market conditions, we must brace for additional staff measures," said Goh in the email. “We will be engaging our staff unions on this and will announce the measures when they have been firmed up," he added. “Our immediate priority is to do everything we can to survive this crisis and be ready for the long trudge ahead of us."<br/>