India’s biggest IT company today said that salary hike for its employees will be rolled out effective October 1. TCS consolidated headcount stood at 453,540 as of September 30, 2020.
“The salary increase will across all bands of employees and it (the quantum) will be similar to what we had done in the past,” said Milind Lakkad, the chief human resource officer at the Tata Group company.
With this, TCS has become the first among the Indian IT firms to announce a pay increase.
It further added that investments in people, progressive HR policies and an empowering culture have made TCS the global industry benchmark in talent retention. In Q2, its IT Services attrition rate (LTM) was at 8.9%, an all-time low.
“We want to thank all TCSers for the incredible resilience they have shown during these trying times. We are happy to announce that we will be rolling out salary increases, effective October 1st,” it said.
In April, TCS had decided to freeze salary hikes this year due to uncertainty stemming from the pandemic. It had assured employees that there will be no layoffs and neither will the job offers to 40,000 new hires be rescinded.
India’s largest software services outsourcer has seen its profit rise and margin bounce back in the July-September period on the back of strong deal wins and smoothening of supply-side constraints.
The filing said the Board has approved a buyback plan of up to Rs 16,000 crore, priced at Rs 3,000 per equity share.
This is 9 per cent higher than the closing price of TCS shares on BSE on Wednesday.
TCS shares closed at Rs 2,737.4 apiece on Wednesday.
“The Board has approved a proposal to buy back up to 5,33,33,333 equity shares of TCS, being 1.42 per cent of the total paid-up equity share capital, at Rs 3,000 per equity share for an aggregate amount not exceeding Rs 16,000 crore,” it said.
The company has also announced an interim dividend of Rs 12 per share.
