Tata Sons Restores Pay and offers Salary Hikes from April 2021
Tata Sons, the holding company of Tata Group has restored staff salaries to the pre-Covid levels and is likely to announce pay hikes from April 2021.
Remarkably, the top executives of Tata group companies’ had taken around 20% pay cuts in 2020 to keep costs low last year after coronavirus hit revenues hard.
According to The Economic Times report, The Tata Group Companies like TCS, Voltas, Titan, Tata Motors, Tata Chemicals, Tata Power, Tata Steel, Trent, and Tata Capital have already announced salary increases and bonuses to staff this month based on an estimate that India will be back as the world’s fast-growing economy soon.
Compensation of top management executives is being restored by the end of this month and pay increases are being finalized across group companies.
For top management executives, compensation is being restored by the end of this month. The hospitality unit that runs the Taj chain, Indian Hotels, however, is facing growth challenges and may not undertake a pay hike, the daily said, citing group insiders.
India’s largest IT services major Tata Consultancy Services (TCS) was the first company to announce salary hikes from April 1 for its 4.7 lakh-strong workforces for the next financial year. This is the second salary hike by the IT bellwether in six months; the company had announced one at the end of the second quarter of the current fiscal, effective October 1.
Bhaskar Bhat, Tata Sons Director said, “Businesses in smaller towns are roaring and I am very optimistic about the Indian consumer,”
Costs have also been saved on avenues such as infrastructure, electricity, security, and food. Cost to income ratios has come down with a greater focus on digital channels for sales, services, and collections across products.