TCS to announce salary hikes for FY22, second for company in 6 months

With salary hike in Financial Year 2021-22, TCS employees will get around 12-14 per cent average increment in six months' time

Tata Consultancy Services (TCS), India’s largest information technology (IT) firm, is set to roll out salary hikes for all of its over 469,000 employees from April 2021 – the second raise in six months. TCS has also become the first IT services player to announce salary hikes for FY22.

In October last year, the company had hiked salaries in the range of 6-8 per cent. With the forthcoming hike, TCS employees will get an average increment of 12-14 per cent in six months.

When contacted, a company spokesperson said, “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.”

With the development it looks like TCS and the IT industry could be moving to normal increment cycles. In FY21, the company onboarded 40,000 campus recruits. It also continued hiring across geographies, and hired 3,000 in the US alone. For the third quarter of FY21, TCS had reported an all-time low attrition of 7.6 per cent for the last 12 months (LTM).

So far, none of the large IT services players has announced a salary hike for FY22. Recently, Accenture announced that it would give a week’s base salary as a one-time bonus to employees below the managing director. With Accenture raising its guidance for its fiscal ending August 31, industry analysts are saying that the IT services sector is back on the growth path. Cognizant, too, had announced that it would give out over 100 per cent in performance-linked bonus, and promoted 24,000 employees.

Soon after the outbreak of the Covid-19 pandemic, Indian IT majors, including TCS, Infosys and Wipro, had decided to freeze salary hikes as a cautionary move. However, improved performance and better visibility had then prompted many of them to take a relook at the decision.

* TCS announces salary hike for FY22

* Second salary hike in 6mths

* Average salary hike 12-14% in 6mths time

* First IT services player to announce hikes for FY22