Companies kicks off discussions around salary structure for hybrid work model

With the looming formalisation of labour codes and a pending verdict on the relevance of the hybrid work model post pandemic, firms are in no hurry to tweak employee salary structures to reflect the remote-working arrangements.

Companies had kicked off discussions around the need to change salary structures as many people had relocated to smaller towns and hometowns away from office headquarters as remote work was expected to continue in some form in the hybrid work model. However, HR services firm Aon and prominent recruiter Randstad India said hybrid work hasn't sparked off actual revision in salary structures by companies.

Leading firms like Kotak Mahindra Bank, Axis Bank and Tata Consumer Products also confirmed that they are not changing their compensation structure because of hybrid work. Even though hybrid and remote work was touted as the future of work at the peak of the pandemic, employers veered more towards calling employees back to offices once the heath crisis began abating.

"Companies are thinking about the labour code implementation and are waiting for it to be formalised. It will prescribe how companies calculate base salary and PF contribution for employees," said Randstad India MD and CEO PS Viswanath.