Tata Consultancy Services (TCS) doled out 120% quarterly variable pay in fourth quarter ended March 31st as it passed on benefits of strong quarter results. The company also announced salary hikes for FY19 in the range of 2-6% depending on geography.
The earnings season has so far been favourable for IT professionals as India’s second largest IT company Infosys announced an Rs 652-million bonus payout for its employees last week.
MD and CEO, Rajesh Gopinathan said, “We have given low single digit wage hikes in the developed markets and high single-digit hikes in developing markets, with high performers getting increases at the higher end of those bands." The salary hike is effective from April 1st.
Infosys has also announced 100% variable payout to the employees, which is the highest in the past 10 quarters. This comes as the company has renewed focus on reskilling of employees, which has been spelt out as one of the pillars of its new four-pillar strategy.
Infosys, further said it would effect a salary hike for 85% of its employee base from April 1. It will be applicable for both onsite and offshore staff. For the balance 15% employees, including middle and senior management-level staff, the compensation revision will be effective from July 1.
In FY18, TCS made around 20,000 trainee job offers, which will be realised in the coming year. " We are increasingly doing just-in-time hiring since last year and based on the business demand and outlook we will continue hiring through the year," said Ajoyendra Mukherjee, Executive Vice president and head of Global HR, TCS.
TCS also reduced attrition rate by 10 basis points to 11% in the quarter with the total headcount reaching 394,998 with net addition of 4,118 employees over the quarter.
IT midcap Mindtree, which announced Q4 results a day prior to TCSm also introduced wage hike starting April 1st. The company plans to hire almost 1,900 campus graduates and reduce visa applications for the year.
Infosys added 2,416 employees on the next basis (after discounting attrition), taking the total headcount to 204,107 in Q4.