Jet2 asks employees to take 30% pay cut for six months

UK Airline Limited (Jet2) has asked employees to take up to a 30% voluntary pay reduction to deal with the financial ramifications of the Covid-19 (Coronavirus) pandemic.

It is not yet known whether all of its 12,000 employees will be asked to reduce their pay, however, staff including directors who agree to the voluntary reduction, would receive up to 70% of their salary for six months, effective 1 April 2020 until 30 September 2020.

Additionally, performance-related bonuses for the financial year ending 31 March 2020 and the discretionary colleague profit share scheme, will not be paid this year.

With the full aircraft fleet being grounded, the organisation has also furloughed 80% of its UK employees to cope with the financial difficulties of the pandemic. Similar schemes have also been put in place for many of its overseas employees.

Under the government’s job retention scheme, workers can receive 80% of their wages up to a maximum of £2,500 per month.

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A spokesperson at Jet2, said: “The impact and duration of Coronavirus remains difficult to determine, and the board has no clarity as to how this will affect group profit before foreign exchange revaluation and taxation for the financial year ending 31 March 2021.

“The board deems it inappropriate to recommend a final dividend for the year ended 31 March 2020 while making use of the scheme.”