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Compensation Structure of Tata Consultancy Services

COMPENSATION STRUCTURE OF TCS

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shivani singh
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298 views14 pages

Compensation Structure of Tata Consultancy Services

COMPENSATION STRUCTURE OF TCS

Uploaded by

shivani singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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COMPENSATION

STRUCTURE OF TATA
CONSULTANCY SERVICES
TATA CONSULTANCY SERVICES
Tata Consultancy Services(TCS) employs over 6,14,795
professionals, has offices in 46 countries and projects in 55
countries across the world, and has revenue of around $31
billion. TCS today is an Indian enterprise with a global reach.
Its hiring and people care practices are in line with the industry
practices and the compensation model has been traditional.
TCS has been ranked in the Forbes list of World’s Most
Innovative Companies, securing the 66th Rank.
EVA-Based Compensation Model
TCS is looking towards institutionalizing leading-edge practices in hiring, training, and people

care, with an innovative EVA-based compensation model. The target model will be one that

offers a high growth, high-performance internal environment to empowered, proactive, high-

brand consultants operating in a dynamic external environment. The individual works towards

the improvement of the benefits package, which essentially has three components the Corporate

EVA, the Business Unit EVA, and the Individual Performance Factor. Out of the total EVA

payment a certain percentage goes to each employee based on corporate EVA

Improvement. Secondly, if your business unit did better than another business unit, then

Automatically you get more than the other business unit. Again it is a team reward concept.

The third one depends on the evaluation of individual performance.


BOUQUET OF BENEFITS
In order to attract new recruits as well as retain the
existing talent, TCS, Asia's largest IT services
provider, has a scheme called 'Bouquet of Benefits',
which allows TCSers to design their own pay packets.
Launched some six years ago, employees are
allowed to make changes to their salary structure
twice in a year. The flexible-benefit plan aids
employees in working out their tax payouts. For
instance, the employee can cap the amount on food
vouchers and divert the rest to other benefits.
Basic Salary: Base salary is a fixed amount of money paid to an employee by an
employer in return for work performed. Base salary does not include benefits,
bonuses or any other potential compensation from an employer.

Conveyance Allowance: A conveyance allowance refers to an amount of money


reimbursed to someone for the operation of a vehicle or the riding of a vehicle. The
allowance is typically a designated amount or percentage of total transportation
expenses that is referenced in a country's tax laws or code.

House Rent Allowance: House Rent Allowance (HRA) is given by the employer to the
employee to meet the expenses in connection with rent of the accommodation.

Medical Reimbursement: As a benefit, an employee may be reimbursed for


qualified medical expenses from his or her employer. The funds received are tax-
free, but because the plan is employer funded, the employer has the right to cancel
or alter the distributions at any time. In spite of this, many employees consider
Medical reimbursements as a valuable benefit given the rising cost of health care.
Bonus: Bonuses are one of the ways employers reward their employees for a job well done.
Bonuses are usually determined as a percentage of annual salary, though giving all employees
the same monetary bonus is also an option. A growing number of employers are reducing
salaries and increasing the portion of compensation that's performance-based, such as
bonuses.

Leave/Travel Allowance: Leave Travel Allowance (LTA) is granted by the employers to the
employees as part of the remuneration to provide for travel expenses incurred during the year.
Leave Travel Allowance also covers such expenses of the spouse, children as well as dependent
parents and siblings.

Hospitalization: The employees should be provided allowances to get their regular check-ups,
say at an interval of one year. Even their dependents should be eligible for the medi-claims
that provide them emotional and social security.

Insurance: Organizations also provide for accidental insurance and life insurance for
employees. This gives them the emotional security and they feel themselves valued in the
organization.
Retirement Benefits: Benefits, other than pension distributions, paid to employees
during their retirement years. Most post-retirement benefits include life insurance
and medical plans. Although these benefits are mostly employer-paid, retired
employees often share in the cost of these benefits through co-payments, payment
of deductibles and making employee contributions to the plan when required.

Grade Pay: Grade pay' means the basic pay drawn by a member of the Service in
the grade in which he is appointed substantively.

Professional Development Reimbursement: The purpose of the Reimbursement of


Professional Development Expenses Policy is to reimburse members for eligible
professional development expenses which relate solely to those activities which
enhance an individual's performance, ability or effectiveness.

Ex-Gratia: Compensation payments are often made ex gratia when a government or


organization is prepared to compensate victims of an event such as an accident or
similar, but not to admit liability to pay compensation, or for causing the event.
Superannuation: Superannuation is a retirement Benefit by employer. It is a contribution
made by employer each year on your behalf towards the group superannuation policy held by
the employer. This is an important part of creating wealth for your retirement.

Gratuity: Gratuity is a part of salary that is received by an employee from his/her employer in
gratitude for the services offered by the employee in the company. Gratuity is a defined
benefit plan and is one of the many retirement benefits offered by the employer to the
employee upon leaving his job. An employee may leave his job for various reasons, such as
retirement/superannuation, for a better job elsewhere, on being retrenched or by way of
voluntary retirement.

Provident Fund: The EPF is a scheme intended to help employees from both private and non-
pensionable public sectors save a fraction of their salary every month in a saving scheme, to
be used in an event that the employee is temporarily or no longer fit to work or at retirement.

Company Car Value: When a company car is made available for the private use of an
employee a 'benefit in kind' value is calculated in relation to the car, and the fuel if that is also
provided for private use.
TCS career ladder is like below:
TCS New Fresher's (Trainee)

TCS Assistant System Engineer

TCS System Engineer

. TCS IT Analyst

TCS Assistant Consultant

. TCS Consultant

TCS Senior Consultant

TCS Principle Consultant

TCS Vice president

TCS MD
Salary of a New Fresher's in TCS (B.E/B.TECH/B Sc/BBA):
The salary of a TCS new Fresher is Rs 325000-340000/year

Salary for M.E/ M. Tech/MSc/MCA will be Rs 30000/year more than the mentioned salary
Salary of an Assistant System Engineer in TCS (Experience of 1 year):
Salary will increase slightly to Rs 350000/year

Salary of an Assistant System Engineer in TCS (Experience of 2 years):


Salary will be Rs 380000-400000/year

TCS employees will get two increments this year. Once for completion of two years & another in April appraisal
increment
Salary of System Engineer in TCS (Experience of 3 years):
Salary will be Rs 420000- Rs 460000/year

Salary of IT Analyst in TCS (Experience of 4 years):


Salary will be Rs 530000- Rs 580000/year

TCS employee be promoted to IT Analyst post after completion of 4-year

Salary of IT Analyst in TCS (Experience of 5 years):


Salary will be Rs 570000- Rs 640000/year

Salary of Assistant Consultant in TCS:


TCS associates above 7-8 years of experience & having Assistant Consultant receive a salary of Rs 1000000 per year.
Salary of Consultant in TCS:
TCS employees having Consultant posts receive a salary of Rs 1200000-Rs 1400000/year

Salary of Senior Consultant in TCS:


TCS employees promoted to Senior Consultant receive an annual salary of Rs 1800000-Rs 1800000/year.

Salary of Principle Consultant in TCS:


TCS employee promoted to principal consultant post receives an annual salary of Rs 2600000-Rs 3000000,

After completion of 5 years in TCS, TCS employees generally get a 10% average increment in April every year.

TCS MD salary & TCS Vice president have been decided by the TCS board & are not disclosed.
THANKYOU!!

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