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TCS salary correction for onsite staff

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CIOL Bureau
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MUMBAI: Salary correction seems to have become a yearly affair in TCS. This time the company has consolidated the salary of the employees who go abroad on deputation. India's largest IT company has been making changes in its salary structure for the last few years by either cutting down on the variable component of employees or revising the salary.



TCS has made changes in the long term US deputation policy, processes and compensation of the employees. This has come to effect from July 1, 2005. Under the new compensation model, deputed associates would be paid their total salary in the country of their deputation in local currency. Earlier, TCS used to provide compensation and benefits both in India (salary in rupees) and in the country of deputation (a living allowance in local currency such as US dollars). That effectively means that associates deputed to the US would get salary in US dollars. TCS EVP (HR) S Padmanabhan had made a presentation in this regard to all regional heads on May 24, 2005 in New Jersey.



To effectuate this change, the company has modified the terms of 'Deputation Agreement' and 'Deputation Terms Agreement', which are the two principal agreements that govern deputation.



As per the modified section 2 and 2.3 of 'Deputation Agreement', all deputed employees will be paid salary in US dollars and that TCS will withhold all amounts as required by US tax laws and as otherwise requested by employee for such things as benefit contributions. Also as per Section 2.5, TCS will no longer offer paid air-travel to and from India for vacation purposes.



TCS will also maintain a record of employees India compensation, which will attract all changes and revisions to the same extent, as if the employee remained in India during deputation period. After returning to India, this will form the basis of compensation here.

In 'Deputation Terms Agreement', section 4(B) has been modified that says "benefits, which, except for the maintenance of certain benefits in India, will be the same benefits as those offered to TCS' US based associates."



It may be recalled that TCS had corrected the salaries of all the employees in February 2004 and deducted 10 percent from the variable salaries of employees in August 2003.

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