TCS to roll out salary hikes for all employees, effective October 1

In the second quarter, attrition for the IT firm hit an all-time low of 8.9 per cent, a fall of 120 basis points on quarter-on-quarter basis.

After a pause, IT industry leader Tata Consultancy Services (TCS) has decided to go ahead with salary hikes for all its employees.

The salary hikes would be effective from October 1, the company said.

The quantum of the raises is being worked out.

Soon after the outbreak of the pandemic, the Mumbai-headquartered company, while announcing its Q4 and FY20 results in April, had decided to freeze the salary hike decision as a cautionary move.

“The salary increase will be across all bands of employees and it (the quantum) will be similar to what we had done in the past,” said Milind Lakkad, chief human resources officer at the Tata Group company.

With this, TCS has become the first among the Indian IT firms to announce wage hike.

In the second quarter, attrition for the IT firm hit an all-time low of 8.9 per cent, a fall of 120 basis points on quarter-on-quarter basis.

The total headcount of the company rose by 9,864 at 453,540 staffers by the end of September quarter.

TCS had virtually onboarded 7,200 trainees in India, around 1,000 in the US and close to 100 in Europe during the quarter.

“The business model is strong enough to withstand any challenges,” said Lakkad, when asked about the Donald Trump administration tightening the visa rules for H1B applicants.

Photograph: PTI Photo