Tata Consultancy Services (TCS) is expected to begin disbursing annual salary increments for the financial year 2025 in April, which is just two months away. The Indian multinational company plans to implement these increments in March, with increases anticipated to be in the range of four to eight percent.
As per usual practice, divisions that have demonstrated exceptional performance are likely to receive higher increments. However, this year, the overall increments are lower compared to previous years. While the average increment generally ranged from seven to eight percent, this year employees have been informed that the increment will fall between four and eight percent. This is notably lower than the average increment of 10.5 percent in FY22.
In April 2024, TCS introduced a new policy that connected employees’ quarterly variable pay to their office attendance. Under this policy, employees with attendance below 60 percent were ineligible for the bonus. Those with 75-85 percent attendance were eligible to receive 75 percent of their variable pay, while employees with 60-75 percent attendance were entitled to only 50 percent.
The strategy proved effective, as about 70 percent of the workforce returned to the office by July. This was significant because 40 percent of TCS’s workforce had been hired during the pandemic, meaning that many employees who returned to the office in July 2024 experienced TCS’s in-office work culture and environment for the first time.
