IT services major Tata Consultancy Services (TCS) is set to roll out its annual salary hikes for the fiscal year 2025 in March, with the average increases ranging between 4 per cent and 8 per cent, according to a report by Economic Times. The payouts, it added, are expected to start from April 2025. TCS is not the only IT giant announcing salary hikes.
Infosys had, earlier, informed its employees that it will issue compensation revision letters before the end of March. Infosys, finalising salary increases based on recommendations received from delivery units, is expected to announce hikes in the range of 5-8 per cent. The company had paused salary hikes in both FY22 and FY23 to cut costs. Earlier in January, Infosys had informed that its total employee count stood at 323,379 in Q3FY25, compared to 322,663 employees in the same quarter a year ago.
This is noteworthy with IT firms, over the years, witnessing a gradual reduction in annual salary hikes. During the Covid-19 period, hikes by IT companies were often in double digits while it has dropped to single digits in the last two years.
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How will TCS employees be rewarded?
TCS has linked salary hikes and variable pay to employees’ compliance with its return-to-office (RT) policy which was introduced in early 2024. The company has mandated a five-day office workweek for most employees.
The IT firm had, in February, released its quarterly variable pay (QVP) for the October-December period for eligible employees. Per this, while many junior and mid-level employees will receive 100 per cent of their variable pay, senior employees will continue to receive lower payouts ranging from 20 to 40 per cent.
At TCS, employees are categorised under different grades, starting from Y (trainees), C1 (systems engineers), C2, C3-A & B, C4, C5, and CXOs. Employees at C3B and above are considered senior-level staff.
A report by SightsIn Plus stated that offsite employees can expect a hike of 7-8 per cent, while onsite employees may receive a lower increment of 2-4 per cent. High-performance employees could see salary increases ranging from 12-15 per cent,
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