As the government-ordered lockdown to suppress the rapidly spreading Covid-19 pandemic continues, more companies are resorting to cutting employee pay as an alternative to large-scale retrenchments.

It will be agonising for workers in a country with dangerously high levels of household debt relative to disposable income — which stood at about 70%, according to the Reserve Bank data — and in which pay increases were at record lows even before the crisis...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now