The massive bonus is expected to bring down the profits of the software giant by 27 per cent.
Tata Consultancy Services celebrated 10 years of its public listing by announcing one of the largest ever employee bonus payouts in the history of India Inc. The management declared that every employee, who has been a part of the company for at least one year, will be entitled for the bonus. Every eligible staffer will get a reward equivalent to one week’s salary for each year of his service.
This generous bonus of Rs 2,628-crore will reduce the profits of the software giant by 27 per cent, despite an almost 13 per cent rise in revenue. As of end March, Tata Consultancy Services had 3,19,656 registered employees.
The bonus does not cover some of the subsidiaries and it is primarily for TCS staff.
According to experts, the announcement comes at a time when the attrition levels in the company have reached a 14.9 per cent, the highest in recent times.