After Narayana Murthy's Infosys, Ratan Tata’s TCS makes BIG announcement, set to issue...

Amid a gradual slowdown in salary hikes across the IT industry, India's largest IT company, TCS, is set to roll out its annual salary hike letters for the fiscal year 2025 in March 2025, as per an ET report. The TCS employees' salary increments are expected to average between 4-8 per cent. They are likely to get new payouts in April 2025. Before the Tata Group firm, Narayana Murthy's Infosys recently announced to issue salary increment letters to its employees by the end of February 2025.

The IT industry has seen a shift from double-digit increments during the COVID-19 period to single-digit increases in recent years. In FY24, TCS employees received an average hike of 7-9 per cent, while in FY22, the hikes were around 10.5 per cent. Presently, Tata Consultancy Services (TCS), has a market cap of Rs 14.11 lakh crore, as of February 1.

TCS salary hikes 

The Tata Group company has linked its salary hikes and variable payouts to employees' compliance with its return-to-office (RTO) mandate, the report said. Employees who have adhered to the RTO policy are more likely to receive higher increments. The latest hikes will follow the quarterly variable pay (QVP) released in February for the October-December period. Many junior and mid-level employees received 100 per cent of their variable pay. However, senior employees received lower payouts ranging from 20-40 per cent.

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