Tata Consultancy Services (TCS) announced a massive salary hike for its employees as Christmas and New year bonus. The IT giant has announced a raise in salary of 20per cent and also confirmed its plans of offering variable pay. TCS currently holds six lakh employees. Four lakh employees of which will be receiving the entire variable pay for the Fiscal Year 2022. This covers 70 per cent of TCS’s total employees. The remaining 30 per cent of the employees, on the other hand, will be receiving performance based compensations.
Currently, the salary of only 10-20 per cent of the employees is dependent on variable pay. Milind Lakkad, Chief Human Resources Officer of TCS said in a statement that they are going to pay 100 per cent variable pay for 70 per cent of employees. The remaining 30 per cent will get paid based on their business unit performance. This is for Q2 (July-September). In the same quarter, TCS reportedly has attained a net addition of 9,840 employees. The current workforce of the company as on September 30, 2022 stands at 6,16,171.
The TCS salary hike comes after companies like Wipro and Infosys reduced variable pay compensation for the employees earlier in the first quarter of the year. Reportedly, freshers at Wipro received only 70 per cent of the variable pay that senior level employees received. Similar was the case at Infosys as well.