Tata Consultancy Services (TCS) is likely to start disbursing annual salary increments for the financial year 2025 in April, that is, in two months time. The Indian multinational is planning to implement the annual increments in March (next month), with hikes in the range of four to eight per cent.
As per the usual practice, the divisions that have shown exceptional performance usually receive more increments. However, unlike previous years when the average increment was in the range of seven to eight per cent, the overall increments are less this time. As per an ET report, employees have been told that the increment will be between four and eight per cent. This is rather low compared to FY22, when the average increment was 10.5 per cent.
In April of 2024, TCS had introduced a new policy tying employees’ quarterly variable pay to their in-office attendance. The employees with attendance below 60 per cent were not eligible for the bonus. Under the then newly introduced policy, employees with 75-85 per cent attendance were eligible to receive 75 per cent of their variable pay, while those with 60-75 per cent attendance were to receive only 50 per cent.
The strategy worked, of course. About 70 per cent of the workforce returned to office by July. Given that 40 per cent of TCS’ workforce had been inducted during the pandemic, a significant number of employees that had returned to office in July 2024 had actually experienced the in-office work culture and environment of TCS for the first time.
