India’s largest IT services provider, Tata Consultancy Services (TCS) has denied any change in its increment policy. The company has also said that there is no salary reduction for any employee.
The company said that all its experienced employees will get an annual salary appraisal. Earlier, there have been reports claiming Tata Consultancy Services has reduced the salary of employees.
In a statement, the company said, “We always give increments to employees as per industry benchmarks. Even in the COVID-19 pandemic, we ensured our increment cycle is not affected.”
“All experienced employees will be given an increment under the annual salary appraisal. Significantly, due to the fears of a recession in America, tech companies are gearing up to deal with the decrease in income”, the statement added.
“The statement came on the back of reports that e-mails were sent to staff that it won’t be rolling out hikes to employees who have completed one year with the tech firm”
“There has been a recent revision in TCS policy around the first anniversary,” said a letter sent to the employees. The letter states that those who have completed their first year on April 1 or thereafter will not receive a letter and/or increment on completion of one year.
“The first increment will be at the subsequent annual increment cycle,” said the letter. The changes in policy come at a time when the tech sector is gearing up for budget constraints against a recession in the US”
Earlier, Tata Consultancy Services (TCS) clarified that it has not delayed payments of variable pay to its employees for Q1. And the company further clarified that it is normal to give it in the first or second month and said, “All our compensation and bonus cycles are as per plan.”
The email sent by TCS to employees read, “The performance bonus for Q1FY23 is yet to be finalized for C3A, C3B, C4, and equivalent grades. This will be paid along with August 2022 payroll to eligible associates.”
In a statement, TCS said, “We have come across completely incorrect reports on our compensation. Variable pay is either paid in month one or month 2 as per the normal process and there is no delay in this process. 100% VA is being paid for Q1.”
According to earlier reports, referring to an internal email by the company, “The compensation which was supposed to be paid in July is now likely to be paid by August 2022 end.”
TCS has added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce, the company said in a statement.
Software giant kicking off the corporate earnings season — said its attrition rate further rose to 19.7 percent in the April to June quarter of the 2022-2023 financial year. In the previous quarter, TCS saw an attrition rate of 17.4 percent.
