Some TCS employees claim lower take-home pay after appraisals: ‘Salary decreased ₹3,000’
Tata Consultancy Services (TCS) rolled out average salary hikes of around 5 percent in its latest appraisal cycle on May 18. However, amid changes to annual salary structures linked to the new Labour Codes, several employees expressed concerns over lower variable pay and reduced take-home salaries.Some TCS employees reported lower pay despite appraisals (REUTERS)How TCS gives salary hikesAccording to a Moneycontrol report, TCS usually categorises appraisals into performance bands such as A+, A, B, and C. Higher-rated employees receive better hikes and payouts.Employees in the top-rated A+ category said they received salary hikes between 9 percent and 13 percent. Those in the A band reported increments of around 5 percent to 9 percent.Meanwhile, employees in the B band mostly saw hikes between 1 percent and 3.5 percent. Several employees in the C band said their hikes were either negligible or even negative.TCS had earlier set aside ₹2,128 crore as a one-time cost to align with the new labour code requirements, which was reported in the October-December quarter.Sources added that increments and ratings continued to follow the company’s usual bell-curve appraisal structure.Employees claim salaries fell after appraisalSeveral employees, however, claimed that their compensation had reduced after the restructuring. Some also reported that their monthly variable pay components had either reduced or shifted to quarterly or annual payouts.“Our annual CTC had fallen ₹1,000- ₹10,000 despite receiving appraisal letters,” one employee told Moneycontrol on the condition of anonymity.“Salary actually decreased ₹3000,” another employee claiming to belong to the C3A grade said. “Mine decreased at C band,” one employee added.(Also read:
