Tata Consultancy Services (TCS) on Friday rubbished reports that emails have been sent to staff about not rolling out the hikes to employees who have completed one year with the tech firm. It said all experienced hires will be given an increase as part of the annual salary appraisal that follows their one-year anniversary.
In its response, TCS said, “We have always had increments in line with industry benchmarks. Even during the pandemic, we ensured our increment cycles were unaffected. It is incorrect to suggest otherwise. All experienced hires will be given an increase as part of the annual salary appraisal that follows their one-year anniversary.”
As per reports, a letter was sent to the employees by the company saying that there has been a recent revision in TCS policy around the first anniversary. It also added that those who have completed their first year on April 1 or thereafter will not receive a letter and or increment on completion of one year.
“The first increment will be at the subsequent annual increment cycle,” said the letter.
Recently, there were also reports that TCS has delayed performance bonus and variable compensation for some employees for the June 2022 quarter, by a month. The reports added that the bonus and variable compensation payout will now be paid by August-end now, against its scheduled due date in July. These employees include assistant consultant, associate consultant, and consultant levels.
TCS later dismissed these reports also. “We have come across completely incorrect reports on our compensation. Variable pay is either paid in month one or month 2 as per the normal process and there is no delay in this process. 100 per cent VA is being paid for Q1,” it said.
For the June 2022 quarter, TCS reported a consolidated net profit of Rs 9,478 crore, a jump of 5.2 per cent on a year-on-year basis. The company’s revenue during April-June 2022 rose 16.2 per cent to Rs 52,758 crore, compared with Rs 45,411 crore in the year-ago period. The company’s net profit had stood at Rs 9,031 crore in the corresponding period of the previous financial year.
On a sequential basis, TCS’ net profit witnessed a decline of 4.82 per cent from Rs 9,959 crore in the previous quarter. Its revenue witnessed an increase of 2.29 per cent quarter-on-quarter from Rs 51,572 crore.
TCS’ total expenditure during the June 2022 quarter jumped 19.95 per cent to Rs 40,572 crore, compared with Rs 33,823 crore in the corresponding period last year. Its employee cost also rose 18.23 per cent to Rs 30,327 crore, against Rs 25,649 crore, according to a BSE filing.
IT companies in India are struggling with high attrition rates over the past few quarters, with more numbers of employees leaving their jobs. To battle this issue, many IT companies including Wipro, Infosys, Tata Consultancy Services and HCL Technologies have announced measures including salary hikes and bonus to retain employees. Wipro salary hike for employees will be implemented from September.
Read all the Latest Business News and Breaking News here
Comments
0 comment