Vodafone Idea, India’s third-largest telecom operator, reported a modest rise in employee compensation for 2024-25 even as it continues to seek financial support from the government.

Median remuneration for Vodafone Idea employees increased by 12.7% to ₹14.2 lakh in FY25, compared with a 7% rise in the year before, as per the company’s latest annual report.

However, chief executive officer Akshaya Moondra, chief financial officer Murthy G.V.A.S., and company secretary Pankaj Kapdeo, received more restrained hikes of 7.2-7.7%, down from increases of 8-9.5% for Vodafone’s top management in FY24.

While the company did not mention the exact remuneration for its top management in FY25, based on the annual increment, Moondra’s remuneration is expected to have been about ₹13 crore.

Rival telecom operator Bharti Airtel Ltd’s vice chairman and managing director Gopal Vittal’s pay rose 9% to ₹20.2 crore in FY25.

Vodafone had 9,985 permanent employees on its rolls as on 31 March, up from 9,816 employees a year ago.

The average remuneration increase for Vodafone employees excluding key managerial personnel was 7.5%, slightly below the previous year’s 8%, reflecting moderate raises for the company’s high earners amid tighter cost management.

Bharti Airtel, too, moderated its employee salary hikes in FY25, with the average salary increase dropping to 8% from 8.7% in FY24. Median remuneration fell 3.95%, after dropping 5.6% in FY24, owing to changes in the employee mix and role transitions across the group during the year, Airtel had said.

The trend in Vodafone’s employee remuneration assumes significance as the telecom operator currently sits on a huge pile of dues. As of March-end, the company’s payment obligations to the government stood at ₹1.94 trillion, comprising deferred spectrum payment obligations of ₹1.18 trillion and adjusted gross revenue (AGR) dues of ₹75,945 crore.

“The coard believes that the company’s ability to settle the liabilities is dependent on further support from the DoT (Department of Telecommunications) on the AGR matter, fund raise through equity and debt and generation of cashflow from operations,” the company said in its annual report for FY25.

“Based on the current efforts, the company believes that it would be able to get DoT support, successfully arrange funding and generate cashflow from operations,” the company added.

In FY25, Vodafone Idea’s revenue from operations rose 2.2% to ₹43,571 crore, while its loss narrowed to ₹27,383 crore from ₹31,238 crore in the previous year. Its subscriber base, however, dropped to 198.2 million at the end of March from 212.6 million a year ago.

“The company believes that it is well positioned to exploit the growth opportunities in India’s rapidly expanding mobile telecommunications industry. The company’s primary focus has been on network investments to ensure superior customer experience,” Vodafone Idea’s non-executive chairman, Ravinder Takkar, said in a message to shareholders in the annual report.

Takkar said the company remains focused on strengthening its position on business services, especially the new and fast-growing segment of internet-of-things and cloud services.

“Our 4G subscriber base has grown in 14 out of the last 15 quarters, with the only decline observed in Q2FY25, where loss of subscribers happened post a tariff hike,” Takkar said, adding that the company is confident that this positive trend will continue as it sustains its pace of capital expenditure.

Vodafone had 126.4 million 4G subscribers as of March-end.

In April, the company approached the DoT seeking relief on its AGR dues. It later filed a writ petition before the Supreme Court seeking relief, but the court dismissed its plea.

“In the company’s view, this dismissal does not preclude it from further engaging with the government of India based on its foreseeable cashflows for arriving at an appropriate solution on the AGR matter before the next instalment date,” Vodafone Idea said in the annual report.

The government owns a 49% stake in Vodafone Idea. Its four-year moratorium on payments of AGR and spectrum dues for telecom companies, including Vodafone Idea, ends in September.  

Beginning 31 March 2026, Vodafone Idea must pay an annual instalment of over ₹18,000 crore for the next six years towards AGR and spectrum dues to the government. In 2025-26 itself, it will have to pay ₹16,428 crore towards AGR dues and ₹2,539 crore towards deferred spectrum dues.