Tata Consultancy Services (TCS) says no changes in increment policy and all experienced hires will get annual salary appraisal.
“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,” said the company on Friday.
The statement came on the back of reports that emails were sent to employees that it won’t be rolling out hikes to employees who have completed one year with the tech firm.
“There has been a recent revision in TCS policy around the first anniversary”, said a letter sent to the employees. The letter states that 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”, said the letter.
The changes in policy come at a time when the tech sector is gearing up for budget constraints against a recession in the US.
While some firms like Infosys are rolling out 70% of variable pay, reports state that Wipro had delayed payouts for certain employee categories. Margin pressure crunch is one of the main reasons for tech firms where manpower costs are high.
TCS had earlier stated that it has not delayed its variable payouts.