TCS, Infosys, HCL, Cognizant Offering Upto 25% Salary Hike For Employees – Some Are Getting 100% Salary Hike!
New Delhi: Indian information technology (IT) companies’ employee spending has reached an all-time high as salaries have drastically increased in an attempt to retain talent.
As per a news report, India’s second-largest IT firm Infosys, which reported a 27.7% attrition rate for the fourth quarter of 2022, plans to give out an average salary hike of 12-13%, and high potential staff will get hikes of 22-23%.
TCS is going to increase employee salaries
India’s biggest software services company Tata Consultancy Services Ltd (TCS) has said that for the year 2023, the salary of its employees is going to increase by 6-8%. Notably, the high attrition rate trend is not just playing out in India, but companies all around the world have been in an unknown race to get top tech talents on board with their company.
Microsoft plans to double its global budget for merit-linked salary hikes
Microsoft CEO Satya Nadella informed employees that the IT giant plans to almost double its global budget for merit-linked salary hikes.
“Time and time again, we see that our talent is in high demand, because of the amazing work you do to empower our customers and partners. Across the leadership team, your impact is both recognized and deeply appreciated — and for that I want to say a big thank you. That’s why we’re making long-term investments in each of you,” said Nadella in an email to employees.
Rituparna Chakraborty who is the co-founder and executive vice president, TeamLease Services, said that when companies are talking about an average salary increase, they are referring to the total increase in wage cost. But the actual salary hike of an employee may vary from high to low.
Citing TeamLease’s recent jobs report, she further elaborated that employees are going for highly specialised job roles and the demand for these job categories is also rising. The growth rate in this category has risen by 11-12% in 2022. Sectors such as startups, IT and e-commerce are going to witness salary increases of more than 11% this year.
Shiv Aggarwal, managing director, ABC Consultants, said that the industry has seen the highest ever salary rises in the last year.
He added that the salary increase in the IT services sector is going to be in double digits. Moreover, companies are saying that they are increasing the salaries by 12-14%, but people are getting offer letters with a 50-100% salary hike.
TCS has given out salary hikes in double-digits and in some cases up to 25%, a human resource expert said and asked to stay anonymous.
HCL Technologies hiked fresher level salary package to Rs 4.25 lakh from the industry standard of Rs 3-3.6 lakh.
Cognizant to employ more freshers
Cognizant stated that it is going to employ more freshers and may consider revising the salaries of employees in this new background of rising attrition rates.