Mumbai: Serious economic impacts in the global market and increasing pressure on operating margins have forced India's largest IT services provider Tata Consultancy Services to withdraw its routine 'one-year anniversary' increment to employees.
The company, in a formal letter to those employees who had completed a year with the organisation during the current fiscal year, said that they would receive their next increment only along with the annual appraisal cycle.
TCS, which used to announce a pay hike to its new employees once they complete the first year, typically does its annual appraisal of employees in March. The one-year anniversary hike in TCS was in addition to the pay rise after annual appraisal.
According to sources in the company, TCS has written to the employees who have completed their first year after joining the firm saying; “....thank you for your contribution towards a year of growth. Your continued commitment and effort will help TCS sustain its leadership position. Your annual compensation will be reviewed in the next annual appraisal process.”
The TCS move comes soon after rivals Infosys and Wipro withdrew or suspended their variable pay component to employees just a few weeks ago due to pressure on revenue.
