Homegrown rapid-grocery delivery company Dunzo has committed to paying its employees a 12 percent annual interest on the salary component that was withheld since June.
Furthermore, as reported by MoneyControl, the startup reassured its employees that it is making steady progress in clearing all pending debts and aims to settle them by September 4.
Earlier this month, Dunzo made an announcement stating that it would defer wages for approximately 500 employees and impose a salary cap of INR 75,000 from June, regardless of an employee’s pay package.
Initially, the company had set July 20 as the deadline to clear all pending dues. However, an email was subsequently sent out, extending the deadline to September 4.
“Thank you for your patience and continued support. We understand the inconvenience this (delay in salaries) has caused and want to ensure that we provide the possible support for the delay,” Dunzo’s payroll team said in an email to employees.
“There will be interest paid of 12 per cent per annum,” it added.
When the final payout is made, all employees who have been affected since June will receive interest for two months, from July 4 to September 4.
An interest rate of 12 per cent per annum translates to an interest rate of 1 per cent per month, according to the report.
For example, a worker who was earning INR 1 lakh monthly but was only paid INR 75,000 in June due to Dunzo’s decision will now receive 12 per cent annual interest on the remaining INR 25,000.
Meanwhile, Dunzo has received legal notices from at least seven companies since March this year.
The company had received legal notices from Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo and Glance.
Read More: Legal troubles mount for struggling Dunzo as companies seek payment resolution
In total, Dunzo’s outstanding vendor debts amount to approximately INR 11.4 crore, nearly double the previously estimated INR 5-6 crore.