TCS rewards employees with massive salary hike after making Rs 10,000 crore profit: Reports

Tata Consultancy Service is giving a 20% Christmas salary hike to 70% of its employees and the rest of the employees get a salary hike based on their performance. There are almost 6 lakh employees in the firm. 10-20% of the employees' salary is dependent on variable pay. TCS has planned to roll out 100% variable pay to 4 lakh employees for the financial year 2022. 

According to the source, currently, TCS has implemented a 100% variable compensation scheme for employees. According to the earlier reports, the company’s net profit for the previous quarter rose by 8%, reaching more than 10,000 crores. 

Milind Lakkar, the company's chief human resources officer, made the announcement on Monday after the company's quarterly results were made public. He said that in the second quarter of the current fiscal year, the company will pay all of the variables to 70% of its employees. Performance-based remuneration will make up the final 30% of workers' compensation.

(Also Read: After Gambia, Uzbekistan claims 18 children deaths linked to India-made cough syrup)

Competitors in the first quarter, TCS, Wipro, and Infosys all decreased variable compensation for their employees. Entry-level employees at Wipro only received 70% of the variable remuneration that senior personnel received. Infosys followed suit and set a limit on total employee remuneration at 70% of the previous level. 

In the month of July and September, TCS hired 20,000 employees bringing the total number of new hires for all of 2022 to 35,000. Earlier it stated that the firm will hire 40,000 new graduates. 

10,000-12,000 new employees will be hired by TCS, the company revealed. A new objective will be set after the third quarter, according to Lakkar, the director of human resources.

Recruiting has stagnated as the attrition rate in the IT sector declines. The average attrition rate for the company is 19.7%, but it was previously at 21.5%. 

TCS is actively looking for fresh graduates, despite the fact that the IT sector as a whole has struggled to recruit new employees. Lakkad claims that the turnover rate reached its high in the second quarter and then sharply decreased after that.

However, TCS hasn't confirmed the news. A source close to the company has recently confirmed that the above-sated news is false.