Tata Consultancy Services (TCS) has announced salary increments for its 4.7 lakh-strong workforce for the next financial year. The salary hike will be effecting from April 1, 2021, making it the first IT services company to return to the usual increment cycle in FY22.
This is the second salary hike by the IT bellwether in a span of 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 6-8 per cent hike.
"We can confirm that we are on track to give increments to all associates across our geographies effective April 2021, in line with our benchmarks. We are extremely thankful to all our associates for demonstrating resilience, adaptability, and an innovative mindset to steer the company in these trying times. This step is a reflection of our steadfast commitment to our associates," a TCS spokesperson said on Friday.
Along with the salary hikes, TCS will also continue to offer promotions as its regular promotion cycle.
Accenture has announced a one-time bonus for its employees below the rank the of managing director. The bonus will be equivalent to one-week's base pay. Accenture has also raised its revenue growth forecast for its fiscal ending August 31, 2021, marking positive signs for the Indian IT industry.
Among peers, Infosys, Wipro and HCL Tech have already announced salary hikes between October 2020 and January 2021. Meanwhile, US IT major Cognizant has promoted 24,000 employees globally as well as rolled out salary hikes for 1.6 lakh employees based on performance.
The Indian IT industry is expected to return to pre-pandemic growth levels in the last quarter of FY21 on the back of rise in demand amid lockdown and large deals signed during the previous two quarters.