bench' which will comprise around 350 people who are currently non-billable. Since there are no immediate billable opportunities for them, we plan to retain them in the organization giving them time off to improve their skills and get re-trained in skills which are in higher demand. While these employees need not report to work, the Company will give them a compensation equivalent to 50% of their basic salary (total pay will be 20% of the gross salary). The virtual bench will be implemented with immediate effect and it will be reviewed at periodic intervals, so that the organization can explore opportunities to absorb them as needed back into the mainstream. These employees will continue to receive retirals (provident fund and gratuity) and hospitalization insurance and life cover from the Company and their service continuity will be protected as well.
We are also implementing a salary cut for our employees above certain levels across the organization. The salary reduction for Hexaware will range between 5 – 10 % and will be effective April 2009. The salaries of
employees at the entry level to employees up to G3 will not be impacted while the senior most employees will be subject to a higher percentage cut. In India, grades G2/S2 and G3/S3 will not be affected, G4/S4 and G5/S5 will have a 5% cut, G6/S6 to G10/S10 will get a 8% cut and G11 and above will be subject to a 10% cut. All non- India employees will get a 5% salary reduction subject to local regulations. The salary reduction for Caliber Point will range between 2 – 5 % and will also be effective April 2009. At Caliber Point, all grades below C6, D7 and O7 will not be affected. Grades C6-C7, D7-D8 and O7-O8 will get a 2% reduction, grades C8-C11, D9-D13 and O9-O13 will get a 3% reduction and grades C12, D14, O14 and above will get a 5 % reduction
As a result, the salaries of 40% of the total employees will be unaffected. The entire situation will be reviewed at regular intervals. The annual performance appraisal process will take place like in the past. We will continue focused competency development and training and re-skilling opportunities like before. Each of you will individually receive a revised compensation letter from HR shortly. Feel free to talk to your HR business partners for any further queries.
