TCS to offer up to 8 percent hike to employees working remotely, 2-4 percent to those working from office

TCS to offer up to 8 percent hike to employees working remotely, 2-4 percent to those working from office

March is about to end and it is that time of the year when people wait for their appraisals. However, it seems that the data on the average salary hike that employees will be getting at TCS has leaked online before appraisals happen. People familiar with the matter told Business Standard that TCS will implement salary hikes for its offsite and onsite employees in the upcoming fiscal year.Â

The increments are said to range from 7-8 per cent for offsite staff at TCS, which is basically the ones working from remote locations. The onsite employees, which could be the ones working from the office, will reportedly get a 2-4 per cent salary hike at TCS. The cited source also highlighted that the high performers will potentially receive a salary raise of 12-15 per cent.

These salary revisions, slated to take effect from April 1, 2024, come in the wake of TCS’s recent compensation review. The company’s headcount, which stood at 603,305 as of December 31, 2023, has been a focal point, with the promotion process likely to be deferred to the first quarter of FY25.

While TCS remains tight-lipped about the specifics, a source familiar with the matter revealed to Business Standard that the salary increment process is nearing completion. However, promotions, particularly at the senior level, are under rigorous scrutiny due to cost considerations.

While there is no official statement on this matter from the company, TCS’s Chief Human Resources Officer, Milind Lakkad, previously talked about the significant pay hikes ranging from 12-15 per cent for exceptional performers during the last annual compensation review in 2023. However, the company witnessed a decline in headcount for the second consecutive quarter, shedding 5,680 employees in the December quarter (if reports are to be believed).

The decision to implement salary hikes for remote and onsite employees comes amidst TCS’s financial performance, with a net profit of Rs 11,058 crore reported in the quarter ended December 31, 2023. Besides, it was recently reported that TCS has given its employees time until the end of March to return to the office. The company is struggling to call people back to the office as such warnings have been given since last year. TCS has stressed that this extension will be the final one, indicating a zero-tolerance approach to further delays.

The Chief Operating Officer NG Subramaniam affirmed that there will be strict consequences for employees who fail to resume work from the office by the specified deadline. This stern warning shows the seriousness of TCS’s stance on the matter.

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