Singapore Airlines (SIA) is cutting pay for employees, managers and bosses, a memo by chief executive officer (CEO) Goh Choon Phong to staff said, according to Business Times.

Unions have knowledge of the pay cut.

The SIA group suffered a more than S$1 billion net loss in the first-quarter of 2020.

By how much?

The monthly variable component of salaries will be cut starting Aug. 1.

This amounts to 10 per cent of the basic salary for all staff below the level of manager.

Higher cuts for more senior positions

All staff at the rank of manager and above will see more cuts to basic salaries starting Aug. 1.

Managers and senior managers will see a 12 per cent reduction, up from 10 per cent previously.

Vice-presidents (VPs) and divisional VPs will see a 15 per cent cut, up from 12 per cent.

Senior VPs will take a 25 per cent decrease, up from 20 per cent previously.

Executive VPs will take a 30 per cent cut, up from 25 per cent.

The CEO’s salary will be slashed by 35 per cent, up from 30 per cent.

Early retirement option

The company will also offer a Covid-19 special early retirement scheme for all ground staff and pilots.

This scheme will be available to those aged 50 and above, with at least 15 years of service, and up to the level of divisional VP.

Goh said the airline group needs to be prepared for “a long and hard Covid-19 induced winter”.

Top photo via Unsplash