Tata Consultancy Services (TCS), India's largest information technology (IT) services company, has announced compensation increases for the bulk of its employees in the range of 4.5 per cent to 7 per cent, according to reports today, September 2.
The Tata group company began mailing out letters of increment to staff late Monday evening, and the increments will take effect in September, according to Moneycontrol.
This comes after discussions about a prospective salary increase have been postponed for the past two months due to unclear market conditions.
TCS has raised the salaries of its lowest and middle-level staff. People familiar with the situation informed the claimed that the company's best performers received more than a 10 per cent salary increase, Mint reports.
Employees will receive amended pay checks when their salaries are credited at the end of the month. The hike band is comparable to previous year.
TCS, which typically announces rises in April, was the first to postpone it this year, citing an adverse and uncertain financial environment. It maintained its position when it announced its second-quarter results in July, according to Business Standard.
It publicly announced the restart of compensation increases last month, which are consistent with what other IT services companies have often offered in recent years.
In July, the company revealed plans to reduce about 2 per cent of its workforce, or approximately 12,000 workers, citing the inability of these individuals to be deployed in projects due to the rapidly evolving Artificial Intelligence skillsets. It was also considered as an effort by the company to maintain its operational margins, which were under pressure.
