TCS delays pay rises for employees completing one year of service

Tata Consultancy Services (TCS), the country’s largest IT services company, has postponed raises for employees who have completed one year of service.

Tata Consultancy Services (TCS) announced on Friday that its employee increment policy will remain unchanged and that all experienced hires will receive an annual salary appraisal.

As a result, employees who have completed a year of service on or after April 1, 2022, will not receive a letter or an increment upon completion of their first year.


TCS stated in a letter to its employees, “TCS policy was recently revised around the first anniversary. The first increment will occur during the following annual increment cycle.”

All major IT companies have been under intense margin pressure, and Infosys recently deducted 30% of average variable pay due to margin pressure. Wipro, too, has resisted variable pay. TCS, on the other hand, has stated that it will pay its employees 100% variable pay.

“We made certain that our increment cycles were unaffected even during the pandemic. To suggest otherwise is incorrect. As part of the annual salary appraisal that follows their one-year anniversary, all experienced hires will receive an increase “TCS stated.

The Nascent Information Technology Employees Senate (NITES) strongly condemned TCS’ decision to suspend new hire increments and appraisals for a year.

“The company is unethically revising employee remuneration policies without the approval of the Labour Ministry. The company promises to pay employees a set salary at the time of hiring, but then changes policies without consulting employees “NITES President Harpeet Singh Saluja stated