India's largest IT services company Tata Consultancy Services (TCS) has announced reverting to its original wage hike cycle, with FY21 being an aberration. The new hikes for FY22 will be effective from April 1, 2021, across all geographies and is expected to be in line with the company's past payouts.
TCS had deferred the roll out of wage hike for FY21 by nearly six months due to the pandemic. The earlier wage hike was rolled out in Q3 of FY21 (October-December quarter). With the cycle returning to normalcy starting April, employees are expected to get an average of 12-14 per cent hike with both increments put together.
In the earning conference call for Q3 FY21, Rajesh Gopinathan, CEO and MD, had said that the company had paid out 100 per cent of the variable pay in the past two quarters and the promotions were carried out as normal cycle. In the same quarter TCS had a 15,721 net addition to the headcount with attrition at very low levels of 7.6 per cent. However, the number is expected to go up in coming quarters.
Milind Lakkad, Chief HR Officer, said on the same call that they expect the number to go up a bit. "Whether it will come to original levels or not, we don't know yet. But the point is, this is last 12 months' attrition, and we expect that marginally it will increase over quarters."
At the end of third quarter, TCS had 469,261 employees with 36.4 per cent women in the workforce.