Byju's Likely To Pay April Salaries To Employees This Week: Report

Byju's has reportedly introduced a new policy that ties the salaries of its sales staff directly to the revenue they generate each week

According to the report citing sources Byju's employs approximately 15,000 individuals, with the company's total salary expenditure estimated to fall between Rs 40 and 50 crore

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Financially struggling edtech Byju's is reportedly planning to disburse April salaries to its employees this week. The company is currently dealing with challenges related to delays in salary payments to its workforce. “There has been a delay in salary. It is expected to be now paid sometime this week,” a person familiar with the matter told Business Standard.

In the previous month, Byju Raveendran, founder and CEO of Byju's, obtained a private debt of approximately Rs 30 crore to cover the March salaries of employees. The delay in salary payments is attributed to funds generated from a recent rights issue, which have been held in a 'separate account' amid an ongoing dispute with investors.

According to the report citing sources Byju's employs approximately 15,000 individuals, with the company's total salary expenditure estimated to fall between Rs 40 and 50 crore.

Byju's has introduced a new policy that ties the salaries of its sales staff directly to the revenue they generate each week. As per an internal document seen by Business Standard, Byju's will now allocate a percentage of the weekly revenue directly to each sales staff at the conclusion of the seven-day period. This policy, started on April 24, will be effective for four weeks until May 21, 2024. It specifically pertains to the Inside Sales (IS) and Byju's Exam Prep (BEP) teams, which primarily concentrate on generating revenue for the company.

“Starting immediately, 50 per cent of the upfront weekly collection will be directly disbursed to our sales associates every week for the next four weeks. For instance, if an associate successfully collects Rs 50,000 in revenue generated from orders between April 24th and April 30th, they will receive Rs 25,000 on May 1st,” reads the document.

As per the document, the base salaries for sales team associates will be placed on temporary suspension during this timeframe. “Since the base salary has been suspended, you will not receive any payout or salaries for the given period (when the associate fails to do any revenue in a given week),” the company said.