Tata Consultancy Services (TCS) will not extend the hike for employees who have completed one year with the tech firm. The company said in an email to its employees that for those who have completed their first year, the increase will be started in 2023.
A letter sent to employees said, “The TCS policy has been recently amended around the first anniversary. Those who have completed their first year on or after April 1st, will be eligible for the completion of their first year,” the letter said. but will not get a letter or increment of one year.
“The first increment will be in the subsequent annual increment cycle,” the letter said.
The change in policy comes at a time when the tech sector is gearing up for budget shortfalls against a recession in the US.
While some firms like Infosys are rolling out 70% variable pay, reports said Wipro had delayed payments for certain employee categories. Lack of margin pressure is one of the main reasons for tech firms, where manpower costs are high.
TCS had earlier said that it has not delayed its convertible payments. TCS did not respond to an email from Mint at the time the story was published online.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,