India's largest IT services company, Tata Consultancy Services (TCS), will likely increase the salaries for its offsite employees by an average of 7-8 percent and for its onsite employees 2-4 percent in 2024-25, according to a report by Business Standard quoting sources.
The report stated that high performers may expect a raise of 12-15 percent. These increments will be effective from April 1, 2024.
The company will be closely looking at the promotions and the process may also get pushed to the first quarter of FY25, the report further added.
Moneycontrol couldn't independently verify the report.
"The salary increment process is nearing completion, but promotions, especially at the top level, are under strict scrutiny due to cost concerns," as per the source quoted by BS.
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The report also stated that a TCS spokesperson said that as per the company's policy, they cannot comment on speculation.
In 2023, the IT firm gave pay hikes to the tune of 12-15 percent for 'exceptional performers'. “We have given a 12-15 percent raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle,” Chief Human Resources Officer Milind Lakkad said in a statement.
TCS saw its headcount decline for a second consecutive quarter. Headcount was down by 5,680 in the December quarter.
Salary hikes in IT services firms are generally announced in the first quarter of a financial year.
The company reported a net profit of Rs 11,058 crore in the quarter ended December 31, 2023, up 2 percent from Rs 10,846 crore in the same quarter a year ago. The marginal rise was despite high furloughs in the BFSI and hi-tech sectors, coupled with a continued slowdown in discretionary spending.
Also Read | 65% of employees working from office 3-5 days a week, says TCS CEO K Krithivasan
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