Tata Consultancy Services (TCS) will hand out across-the-board salary increments for 2021-22, becoming the first IT services company to do so. The salary hike roll-out will benefit nearly 4.7 lakh employees of the company.
The average increment band for offshore employees is expected to be 6-7 per cent as per norms, sources privy to the development told PTI. This would be the second salary hike within six months by TCS.
When contacted, a TCS spokesperson confirmed that the company is on track to give increments to all associates across geographies effective April 2021, in line with its benchmarks.
"We are extremely thankful to all our associates for demonstrating resilience, adaptability, and an innovative mindset to steer the company in these trying times. This step is a reflection of our steadfast commitment to our associates," the spokesperson added.
The sources said that with the FY22 salary hike, TCS employees will get around 12-14 per cent average increment in six months' window.
TCS was the first IT services company to announce a salary hike for all employees for FY21 in October last year.
The sources noted that the Mumbai headquartered IT firm had given out a salary hike in line with industry norms in FY21, despite uncertainty due to COVID-19. TCS continues to offer promotions as per the regular promotion cycle.
The salary hike announcement by the company marks a return to normal increment cycle, market watchers added.