BENGALURU: Tata Consultancy Services (TCS) is the first IT services firm to announce salary increments for its 4.7 lakh employees for FY22, top sources privy to the development said, adding that the hike will be in the range of 4-8%. This will also be the second pay hike announced by the IT major in six months despite COVID uncertainties with cumulative increments now in the range of 12-14%.
The salary increments will be effective from April 2021. The announcement comes ahead of the company’s fourth quarter results for FY21, which may offset the revenue margins, even as the deals won by the IT firm have remained steady over the last few quarters.
“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 confirmed to The New Indian Express in an e-mailed statement. The company has also offered promotions as per the regular cycles.
The company recovered well from the two slow quarters of Q1, Q2, FY21 after COVID disrupted businesses globally. Q3, FY21 turned out to be the strongest third quarter for the IT giant in nine years with net profit rising by 7.1% YoY to Rs 8,701 crore. The attrition rate also slumped to a record low at 7.6% and there was a net addition of 15,721 employees during the quarter taking the headcount to 469,261. Currently, only 3.4% of staff at the IT service provider are working from office.
TCS CEO Rajesh Gopinathan earlier said that the company is well positioned to reap the benefits of multi-year digital transformation cycles induced by COVID and has seen a broadbased growth across all geographies and verticals during the quarter.