The top executives of the Tata Group companies had all taken a 20 per cent pay cut in 2020, following the pandemic-induced economic slump. However, things seem to be clearly looking up, as close on the heels of Tata Consultancy Services announcing increments, other Tata Sons companies have also announced their intention to give increments and restore the salaries to pre-Covid levels.
TataCapital, Titan, Tata Consumer, Tata Steel, Tata Motors, Tata Power, Tata Chemicals, Voltas and Trent are among the blue-chip companies that have announced restoration of salaries.
By the end of this month, the senior executives will start drawing pre-Covid level salaries. The increments are yet to be finalised and shared though.
However, the hospitality vertical, which continues to witness slow business, may not receive any hikes in 2021. With tourism yet to take off, there seems to be little hope of business going back to pre-Covid levels any time soon.
Recently, TCS, became the first Indian IT company to offer a second salary increment in six months! Factoring in both increments, all its over four lakh employees will benefit from a 12 to 14 per cent hike in their salaries. There will be no change in the promotion cycles either, which will happen as scheduled. The hike is attributed to the rising demand for digitisation, which has been in favour of the Indian IT sector.