TCS to Offer Salary Hikes: 7-8% for Offsite, 2-4% for Onsite Employees

19 Mar 2024 , 02:10 PM

According to a report by Business Standard citing sources, Tata Consultancy Services (TCS), the largest IT services business in India, is expected to raise compensation in 2024–25 by an average of 7-8% for its offsite workers and 2-4% for its onsite workers.

According to the report, top performers could see raises of between 12 and 15%. The aforementioned increases will take effect on April 1, 2024.

The report went on to say that the business will be closely monitoring the promotions and that the process might be moved to the first quarter of FY25.

“The salary increment process is nearing completion, but promotions, especially at the top level, are under strict scrutiny due to cost concerns,” according to a source cited by BS.

In 2023, the IT company increased ‘outstanding performers” salaries by 12–15%. “We have initiated the promotions cycle and granted a 12–15% rise for exceptional performers in our most recent annual compensation review,” a statement from Chief Human Resources Officer Milind Lakkad said.

TCS experienced a drop in headcount for the second straight quarter. The December quarter had a 5,680 decrease in headcount.

IT services companies typically announce wage increases in the first quarter of the fiscal year.

For the quarter that concluded on December 31, 2023, the company recorded a net profit of ₹11,058 crore, a 2% increase over ₹10,846 crore during the same period the previous year. Despite significant furloughs in the BFSI and hi-tech industries and a persistent slowdown in discretionary spending, there was a slight increase.

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