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TCS staff to lose 1.5% of total salary
Employees of Tata Consultancy Services will lose about 1.5% of the total cost to company (CTC) salary for the next two months, as the company failed to meet its internal economic value added (EVA) target of Rs 376 crore for the first time, reports Business Line.
Employees of Tata Consultancy Services will lose about 1.5 per cent of the total cost to company (CTC) salary for the next two months, as the company failed to meet its internal economic value added (EVA) target of Rs 376 crore for the first time.
Though a company spokesperson said that the move will not have any relation to future wage hikes and that clarity on this front will emerge only by March end, the action has predictably jolted TCS staffers. In the third quarter, TCS fell short of meeting its internal EVA target of Rs 376 crore by about Rs 83 crore; this shortfall will be recovered from employees' salaries in February and March, the spokesperson added.
The company believes that the cut is not a huge proportion of the overall CTC and hence it will not spike attrition. Moreover, the provision to adjust variable pay depending on the company's performance and several other external factors is clearly articulated in the company HR policy. "The annual increment letter clearly states that the employees are given the variable pay in advance and that adjustments for the same will be made on an ongoing basis," the company spokesperson said.
Though a company spokesperson said that the move will not have any relation to future wage hikes and that clarity on this front will emerge only by March end, the action has predictably jolted TCS staffers. In the third quarter, TCS fell short of meeting its internal EVA target of Rs 376 crore by about Rs 83 crore; this shortfall will be recovered from employees' salaries in February and March, the spokesperson added.
