Tata Consultancy Services (TCS) is anticipated to raise salaries for its offsite employees by an average of 7-8 per cent and for onsite employees by 2-4 per cent in the fiscal year 2024-25.
According to Business Standard, the report also suggests that high-performing employees may receive increments ranging from 12 to 15 per cent. These salary adjustments are slated to take effect from April 1, 2024.
The report further stated that the company will closely monitor promotions, with the process potentially being postponed to the first quarter of fiscal year 2024-25.
“The salary increment process is nearing completion, but promotions, especially at the top level, are under strict scrutiny due to cost concerns,” reported Business Standard and indicated that a TCS spokesperson mentioned that, as per the company’s policy, they are unable to comment on speculation.
In 2023, the IT firm provided salary increases ranging from 12-15 per cent for ‘exceptional performers’. Milind Lakkad, Chief Human Resources Officer, stated, “We have given a 12-15 per cent raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle.”
For the second consecutive quarter, TCS witnessed a decline in its headcount, with a decrease of 5,680 employees noted in the December quarter. Typically, salary hikes in IT services firms are announced during the first quarter of a financial year.
Despite facing challenges such as significant furloughs in the BFSI and hi-tech sectors, along with a sustained slowdown in discretionary spending, the company reported a net profit of Rs 11,058 crore in the quarter ending December 31, 2023, marking a modest 2 per cent increase from Rs 10,846 crore reported during the corresponding period the previous year.
