When a US MNC Takes Over an Indian Company: Can Employees Expect a Pay Raise?

Dear HR, Could you please advise if a big MNC (US) takes over a small company in India along with its employees, are they supposed to give an increment, too? What are the criteria for payment and benefits? Can employees ask for salary changes, as other nationalities' colleagues get high pay for the same work? Please advise.

Regards

Dear, They will do all that as per the norms. Many times, employees receive better benefits than before. There is a possibility of retrenchment, downsizing of manpower, or policy changes in the near future.

Employees can discuss these issues with management, but not in the early stages of a takeover. Regardless of whether the employer is local or foreign, the pay structure would be competitive within the market or industry.

Thank you.

There is no requirement for the acquiring MNC to give increments as soon as they take over. The transition of the employees and the move to the new company depends on how the acquisition has taken place and whether it remains a separate company or is merged, or the employees are given new employment in the MNC.

There is no norm to pay employees of all nationalities the same, irrespective of where they are based, even if they are doing the same work. However, most MNCs pay higher salaries than Indian companies, so it is likely they will adjust the salaries of worthwhile employees to match their standards.