Days after Tata Consultancy Services (TCS) said it'll announce hikes to its employees soon, other Tata Sons companies have followed suit saying they will restore the salaries to the pre-Covid levels and will announce appraisals for the next financial year. Notably, Tata group companies' top executives had taken about a 20 per cent pay cut last year after coronavirus hit revenues hard.
The group's blue-chip companies that have announced to restore salaries are TataCapital, Tata Consumer, Titan, Tata Motors, Tata Power, Tata Steel, Tata Chemicals, Voltas, Trent, among others, as reported by The Economic Times.
The group companies have taken this decision based on an estimate that India will be back as the world's fast-growing economy soon. While the decision on hikes is being discussed at various levels, salaries of the top executives will be restored by March-end.
The only vertical, which may not see hikes this year, could be hospitality, say insiders, adding that Tata's hotel chain Taj Hotel continues to face losses as the tourism industry fails to revive demand to the pre-covid levels and have to bear the cost of electricity, security and food.
India's largest IT services major TCS was the first one 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.
TCS employees are likely to see increments in the range of 12-14 per cent on an average between both increments. The company usually gives a 6-8 per cent hike.
Along with the salary hikes, TCS will also continue to offer promotions as its regular promotion cycle. The Indian IT industry is expected to return to pre-pandemic growth levels in the last quarter of FY21 on the back of a rise in demand amid lockdown and large deals signed during the previous two quarters.