TCS Gives Salary Hikes, 12-15% Raise to Exceptional Performers
Tata Consultancy Services (TCS), the country's largest IT services company, has announced its annual salary hike for its employees across the board, effective from April 1, 2023. The company has also rolled out promotions for its high-performing staff and said it will honour all the offers it has made.
According to sources, TCS is giving eligible workers a 20% pay raise; the company’s remaining workers will get raises based on performance. About 6 lakh people work for TCS overall. 10% to 20% of the salary is determined by variable compensation. The company said 70% of employees will receive 100% variable pay. The rest -30% will get it based on business performance.
The company's chief HR officer, Milind Lakkad, said in a press conference that 40,000 freshers will be onboarded this fiscal, but how it will be spread over the year remains to be seen. He added that in certain cases onboarding is getting delayed due to project delays. “I commit today that we are going to honour all offers,” he said.
TCS has also commenced the promotion cycle. He said the company has given a 12-15% raise for exceptional performers in its latest annual compensation review. "We have gone ahead and rolled out our annual salary increase with effect from April 1. Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies,” said Samir Seksaria, chief financial officer, TCS.
TCS also reported a decline in its attrition rate in the June 2023 quarter (Q1 FY24) to 17.8% for the last 12 months. The rate had stood at 20.9% in the previous quarter ended March 2023. The company's total workforce stood at 615,318 as on June 30, a net addition of 523 during the quarter. The workforce continues to be very diverse, comprising 154 nationalities and with women making up 35.8% of the base.
TCS said its investment in upskilling its workforce continues apace. Year till date, 103,000 employees were trained in high demand competencies and collectively, TCSers clocked 12.7 million learning hours, and acquired 1.3 million competencies. The company said its Return to Office initiative is picking pace, with 55% of the workforce already in the office thrice a week.
TCS said clients continue to invest in building a strong cloud foundation for business innovation. Cloud migration, data modernisation and application modernisation coupled with new digital technologies such as AI continue to drive growth.
TCS is one of the leading IT companies in India and has been consistently delivering strong results despite the challenging business environment due to the pandemic. The company's salary hike and promotion announcements reflect its confidence in its growth prospects and its commitment to reward its employees for their hard work and dedication.
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(1) TCS Hike Percentage 2023 Predictions (Complete Info): Hike Letter .... https://www.naukrimessenger.com/salary/tcs-hike-2023-predictions/.
(2) TCS rolls out salary hike; says will honour offers, delays due to biz .... https://www.newindianexpress.com/business/2023/jul/13/tcs-rolls-out-salary-hike-says-will-honour-offers-delays-due-to-biz-environment-2594365.html.
(3) TCS Attrition Declines To 17.8% In April-June 2023, Rolls Out ... - News18. https://www.news18.com/business/tcs-attrition-declines-to-17-8-in-april-june-2023-rolls-out-annual-salary-hikes-form-april-1-8316907.html.
(4) TCS Band Release 2023 Update (Complete Figures) | TCS Band Structure. https://www.naukrimessenger.com/salary/tcs-band-release/.
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