Tata Consultancy Services (TCS) will roll out salary hikes from April for this financial year, covering more than 469,000 employees and announcing a second increment within six months.
The company had hiked salaries by 6-8 per cent in October 2020. With the upcoming hike, TCS employees will get around 12-14 per cent average increment in six months’ time.
A company spokesperson said: “We can confirm that we are on track to give increments to all associates across our geographies effective April 2021, in line with our 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.”
TCS and the IT industry could well be moving to normal increment cycles. In Financial Year 2020-21 (FY21), the company had 40,000 new campus recruits. It continued hiring, getting 3,000 in the US alone. For the third quarter of FY21, the company reported its low attrition of 7.6 per cent for the last 12 month (LTM).
No large IT services company has announced a salary hike for FY22 yet. Accenture announced recently that it will give a week’s base salary as a one-time bonus to employees below managing director. Accenture raised its guidance for its fiscal ending August 31. Cognizant has announced that it will give out over 100 per cent in performance-linked bonus and promote 24,000 employees.
After the outbreak of the Covid-19 pandemic last year, IT majors like TCS, Infosys and Wipro held back decision on salaries as a cautionary move. However, the improved performance and better visibility have now prompted many of them to take a relook at the decision.