TCS Will Stop Salary Increment Of New Employees? Here’s The Truth You Should Know!
According to reports Tata Consultancy Services (TCS) has deferred hikes for employees who have completed one year. However, TCS has denied these reports, and as per them, all employees will get salary hike.
What was being said earlier?
As per the earlier reports employees were sent a letter saying that there has been a recent revision in TCS policy around the first anniversary completion.
Those who have completed their first year on April 1 or thereafter will not receive a letter and or increment on completion of one year.
“The first increment will be at the subsequent annual increment cycle,” the letter read.
Other IT companies
Fellow IT giants have been making similar moves.
Under intense margin pressure, Infosys recently cut 30% of the average variable pay, paying out only 70%.
Wipro has also withheld variable pay for certain employee categories.
TCS clears the air
However, TCS has refuted these claims and confirmed that all experienced hires will be given an increase as part of the annual salary appraisal that follows their one-year anniversary.
It said that it always had increments in line with industry benchmarks and that increment cycles were unaffected even during the pandemic.
TCS said, “We have always had increments in line with industry benchmarks. Even during the pandemic, we ensured our increment cycles were unaffected. It is incorrect to suggest otherwise. All experienced hires will be given an increase as part of the annual salary appraisal that follows their one-year anniversary.”
Other recent reports claimed that the firm had deferred performance bonus and variable compensation for some employees for the June 2022 quarter by a month.
Instead, the payout will now happen by August-end as against its scheduled due date in July.
Affected employees include assistant consultant, associate consultant, and consultant levels.
Confirming 100% Variable Payout
TCS later dismissed these reports as well.
It said that variable pay is either paid in month one or month 2 as per the normal process and there is no delay.
It confirmed that “100 per cent VA is being paid for Q1.”
Reacting to the earlier news, Nascent Information Technology Employees Senate (NITES), an employee union, slammed the company’s decision to stop increments and appraisals of the newly joined employees for one year.
Union up in arms
NITES President Harpeet Singh Saluja said that the company is unethically revising policies related to employees remunerations without any consent from the Labour Ministry.
He said, “NITES strongly condemns TCS decision to stop increments and appraisals of newly joined employees for one year. The company is unethically revising the policies related to employees remunerations without any consent form Labour Ministry. At the time of recruitment the company promises to pay definite salary to employees but later amend policies without even talking to employees which is no less than cheating. Mostly Tata group is appreciated & applauded for the philanthropy and corporate social activities but in reality at the ground level the Tata employees are being exploited for financial gains.”
At the time of recruitment it promises a definite salary to employees but later makes changes without consulting the employees.
This is a developing story.. We will keep you updated as more details come in,