Dunzo to pay 12% annual interest on withheld salaries: Report

Homegrown quick-grocery delivery provider Dunzo has promised employees to pay an interest of 12 per cent per annum on the salary component that it held back from June. 

In addition, the startup assured them that it was on track to pay off all outstanding debts by September 4, according to MoneyControl. 

Dunzo announced to pay interest after informing employees earlier this month that it would defer wages for around 500 of them and cap salaries at Rs 75,000 from June, regardless of an employee's pay package. 

The company was supposed to clear all pending dues by July 20, but an email was sent out pushing 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, which was seen by Moneycontrol. 

"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.