Tech Mahindra to roll out salary hikes in early 2021
According to a money control report, IT services major, Tech Mahindra has announced that it will roll out salary hikes in a phased manner in 2021 starting with its junior-most employees.
CP Gurnani, CEO, Tech Mahindra, said in an earnings call on October 23, “We are looking at early 2021 for appraisal and salary hikes. But the management team has not really sat down to decide the quantum of hikes.”
“But it is very clear that it will be rolled out and it will be staggered,” Gurnani said.
Gurnani said, “the junior-most employees will get the salary hike the fastest and the senior-most employees will get it later. But it is part of my budget and part of my planning to do salary hikes for junior-most employees in FY21 (before March 2021) and for the rest in calendar year 2021 (before December 2021),”
Recently, all of its peers, TCS, Wipro, Infosys, and HCL Tech have announced a salary hike for employees, some rolling them out effective October 1 and others effective January 2021. IT firms had suspended salary hikes in April 2020.
Now companies are restoring salary hikes and hiring for employees is expedited as they forecast growth in the coming quarters.
For Q2, Tech Mahindra registered $1265.4 million in revenues, up 4.8 percent quarter-on-quarter, and down 1.7 percent year-on-year. Total headcount in the top four IT firms increased by 17,000 for the quarter ended of September 2020 after a decline of 9,000 in Q1. Tech Mahindra headcount too dropped by 2,000 in the June 2020 quarter. It has increased by 842 in Q2.