Bonanza for TCS employees, company to hand out increments
The salary hike roll-out will benefit nearly 4.7 lakh employees
New Delhi: Tata Consultancy Services (TCS) will hand out across-the-board salary increments for 2021-22, becoming the first IT services company to do so for the upcoming fiscal.
The salary hike roll-out will benefit nearly 4.7 lakh employees of the company.
The average increment band for offshore employees is expected to be 6-7% as per norms, sources said.
This would be the second salary hike within six months by TCS.
When contacted, a TCS spokesperson confirmed that the company is on track to give increments to all associates across geographies effective April 2021, in line with its benchmarks.
“We are extremely thankful to all our associates for demonstrating resilience, adaptability, and an innovative mindset to steer the company in these trying times. This step is a reflection of our steadfast commitment to our associates,” the spokesperson added.
The sources said with the FY22 salary hike, TCS employees will get around 12-14% average increment in six months’ window.
TCS was the first IT services company to announce a salary hike for all employees for FY21 in October last year. The sources noted that the Mumbai-headquartered IT firm had given out a salary hike in line with industry norms in FY21, despite uncertainty due to COVID-19.
TCS continues to offer promotions as per the regular cycle.
The salary hike announcement by the company marks a return to normal increment cycle, market watchers added.
TCS had earlier reported a 7.2% jump in December quarter net profit to Rs 8,701 crore on a consolidated basis, and had hinted that the worst is behind by projecting double-digit revenue growth for FY22.
The company had notched a 5.4% growth in revenue at Rs 42,015 crore for the said quarter.
TCS Managing Director and CEO Rajesh Gopinathan had, at that time, said that the company is entering the new year on an “optimistic note” and its market position stronger than ever before.