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TCS Pay Hikes Met With Blowback Over Reworked CTC and Variable Pay

TCS says the labour code–driven pay redesign preserves take-home salaries.

Overview

  • TCS, which issued appraisal letters Monday, gave most India staff mid‑single‑digit raises and granted double‑digit increases to top‑rated A+ performers.
  • Reports across outlets described wide gaps by band, with many B‑band staff seeing roughly 1%–3.5% hikes and some C‑band employees reporting negligible or negative changes.
  • Many employees say their visible CTC or monthly pay fell after the restructure, citing examples like a ₹3,000 monthly drop and smaller or delayed variable payouts now linked to office attendance and deployment metrics.
  • TCS maintains there is no cut to gross or net pay, says the new structure protects take‑home salary, and notes gratuity will be paid under whichever scheme yields a higher benefit with higher accruals expected to show in June payslips.
  • The company earlier booked a ₹2,128 crore one‑time charge to align with the new labour codes and reported a 584,519 workforce, reflecting a sector under cost pressure that is standardizing pay in ways that could affect morale and job moves.