TCS to hike wage by 5-10%, hire 45,000 this year
Mumbai: Software major Tata Consultancy Services (TCS) Wednesday said it will give wage hikes averaging about seven percent this year to its employees in India, along with 100 percent variable pay.
"We will give 100 percent variable pay for the quarter. The wage hike this year will be averaging seven percent in India. So based on their performance, they (employees) will see wage hike of 5-10 percent plus," said Ajoy Mukherjee, EVP and Head-Global Human Resources.
Salaries of employees in developing countries will go up 4-6 percent, while those located in developed countries will see hikes ranging 2-4 percent.
The wage hike cycle will start April onwards.
TCS will also hire 45,000 people this year and has already made 25,000 campus offers, the company said.
"Last quarter, we have given offers to 25,000 trainees and they will start joining from Q2 (second quarter) onwards. We will be adding about 45,000 (people) this year," he said.
The company, which announced its results today, said it hired 20,098 people (gross) in the fourth quarter ended March 31, 2013. The net addition stood at 12,559 people.
The attrition rate during the quarter stood at 10.6 percent on LTM (last 12 month) basis.
During FY13, TCS added 69,728 (gross) and 37,613 (net) people during the year taking its total headcount to 2,76,196.
"The overall attrition rate was lower at 10.57 percent, with IT attrition at a low of 9.40 percent and BPO attrition falling below 20 percent threshold to 19.5 percent on a last twelve months (LTM) basis," he said.
Mukherjee added that the company's efforts to increase retention by engaging with the employees and offering them a progressive career path is paying dividend with IT attrition rate falling further to below 10 percent.