In a positive development, Tata Consultancy Services Ltd. (TCS) has rolled out salary hikes for 2021-22. The hike rewards its 4.7-lakh strong workforce for delivering growth amidst a global pandemic.
This is the company’s second salary increment within six months. The previous one was announced at the end of the second quarter, effective October 1.
The hike signals the return to normal increment cycles and will be effective from April. As a result, employees will see their annual pay rise by a total of 12-14%. The IT major gives a 6-8% hike normally. It will also continue to offer promotions, as per the regular cycle.
“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," a TCS spokesperson stated. "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."
The hike is a sign of the fact that India's information technology companies are expected to return to pre-pandemic growth levels in the quarter ended March 31, bolstered by strong demand and large deals signed in the previous two quarters. Last week, global IT and professional services giant Accenture announced a one-time bonus equivalent to one week of base pay for employees, in recognition of their exceptional contributions and dedication towards clients through a challenging year, Similarly, PwC India will also be providing a bonus equivalent to 2 weeks’ pay, to all employees which will be included in the salary for March 2021.