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Tata Consultancy Services will give wage hikes of 12-14 per cent to its India-based staff this year, a top company official has said.
“Wage hikes of this nature are important especially given the rising inflation and the fact we are in a high growth environment where there is demand for talent. Moreover, we have done well in the last fiscal and hence it makes sense for us to reward employees appropriately,” Mr N Chandrasekaran, Chief Executive Officer and Managing Director, said.
Salary hikes for employees in its major offshore markets – the US, the UK and Europe – would be in the range of 2-4 per cent.
In emerging markets (Brazil, Mexico, China etc) , the range would be much wider, between two per cent and 10 per cent, depending on the characteristics of each market, said Mr Ajoy Mukherjee, Vice-President and Head- Global Human Resources.
Infosys plans to give an offshore wage hike of 10-12 per cent and an onsite wage hike of 2-3 per cent.
Now, the onus will be on the other companies to give out similar hikes so that they do not see higher churn.
Analysts feel that TCS may not be able to hold on to its operating profit margins of 28.3 per cent due to the wage hikes that would kick in during the first quarter of the current fiscal.
Utilisation levels at the Mumbai-based company stood at 82.4 per cent excluding trainees and 75.1 per cent including trainees.
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