TCS has hiked salaries for most employees by 4.5-7%
What's the story
Tata Consultancy Services (TCS), India's largest IT services company, has announced a salary hike between 4.5-7% for most of its employees. The company started issuing increment letters from late yesterday evening, with the new pay structure coming into effect from this month. This comes after a series of HR-related announcements in the last two months, including deferring pay hikes amid uncertain market conditions and laying off around 12,000 employees or 2% of its workforce.
Increment
High performers rewarded with pay hikes over 10%
The salary hike announced by TCS is mainly for employees in the lower to mid levels of its hierarchy. Notably, high performers have also been rewarded with pay hikes over 10%. This comes as TCS experiences rising attrition rates. The company's attrition rate had edged up to 13.8% in its June quarter earnings report.
Move
Pause in lateral hiring
The organization has paused mid and senior-level lateral hiring and lowered non-allocated staff across various cities including Chennai, Pune, Hyderabad, and Kolkata. The company is also facing questions regarding delays in incorporating around 600 lateral recruits.