TCS Boosts Morale with Salary Hikes Amid Workforce Changes
TCS announces salary hikes of 4.5–7% for most employees, effective September. Despite recent workforce cuts affecting 12,000 workers, the company moves ahead with pay increases. Top performers receive hikes over 10%. Attrition rate rose to 13.8% in June quarter as market conditions remain unstable.
- Country:
- India
Tata Consultancy Services (TCS), India's top IT services provider, has introduced salary hikes ranging from 4.5 to 7 percent for the majority of its staff. This decision, confirmed by sources on Tuesday, arrives amidst a series of unexpected announcements concerning the company's human resources operations.
The pay increments are set to take effect from September, with letters of increase sent to employees since late Monday evening. While an official statement from TCS is still anticipated, media reports highlight that lower to mid-level employees are primarily benefiting from these adjustments, in a market reflecting volatile conditions.
Previously, TCS announced a reduction of its workforce by 2 percent, roughly 12,000 employees, making these salary adjustments a welcomed move for remaining staff. Despite this, the company's attrition rate climbed to 13.8 percent during the June quarter.
(With inputs from agencies.)
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