India’s largest private sector employer, Tata Consultancy Services is effecting a new salary structure for trainees, wherein it has shrunk the performance-linked variable pay component. The move is a cost cutting measure, the quantum of which TCS did not reveal. Freshers joining TCS will be eligible for a variable pay only after six months of the classroom training programme. The training programme too underwent a change early this year with the company increasing the duration from three to six months. The variable pay component, paid monthly, accounts for 19% of the total pay package of trainees and now they would have to be content with 9.5%.
The annual package of a trainee last year was Rs 3.5 lakh. Of this Rs 5,000 per month was the variable component. Around 1,500 freshers will join TCS this month. The company has made job offers to 25,000 candidates, who will join in due course. Few months ago, TCS had sliced off a small portion of the variable pay component across the board because of the gloomy global economic scenario for India’s outsourcing industry. Though the macro environment has improved, TCS is playing safe.
The annual package of a trainee last year was Rs 3.5 lakh. Of this Rs 5,000 per month was the variable component. Around 1,500 freshers will join TCS this month. The company has made job offers to 25,000 candidates, who will join in due course. Few months ago, TCS had sliced off a small portion of the variable pay component across the board because of the gloomy global economic scenario for India’s outsourcing industry. Though the macro environment has improved, TCS is playing safe.
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