After a hiatus, industry leader Tata Consultancy Services (TCS) has decided to go ahead with raising pay for all of its employees. The salary increase will be effective from October 1 and the amount of the increase is being calculated, the company said. Shortly after the outbreak of the Covid-19 pandemic, the Mumbai-based company, announcing its fourth quarter and fiscal 2020 results in April, decided to freeze the pay increase decision as a precautionary measure.
“The salary increase will be extended to all groups of employees and (the amount) will be similar to what we have done in the past,” said Milind Lakkad, director of human resources for the Tata Group company.
With this, TCS has become the first IT company in India to announce a salary increase.
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In the second quarter, IT business attrition hit a record low of 8.9 percent, a drop of 120 basis points on a quarterly basis. The company’s total workforce increased by 9,864 to 453,540 employees at the end of the September quarter.
TCS had practically 7,200 apprentices on board in India, around 1,000 in the US, and around 100 in Europe during the quarter.
“The business model is strong enough to withstand any challenge,” Lakkad said when asked about the Trump administration’s tightening of visa rules for H1B applicants.
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