TCS Announces One-Time Bonus for Employees that will cost Rs 2,628 Crore

Tata Consultancy Services on Thursday said it will give one-time bonus to all eligible employees to mark the 10th anniversary of its IPO. India’s biggest outsourcer will give one week’s salary for every year of service rendered, a move that will cost the company $423 million or Rs 2,628 crore.tcs

TCS had earlier announced a one-time bonus to all eligible employees to mark the 10th anniversary of its initial public offer or IPO. India’s biggest outsourcer will give one week’s salary for every year of service rendered – a move that will cost the company $423 million or Rs 2,628 crore.Employees who have completed at least one year in service will be eligible to receive the one-time bonus. “This special reward to employees acknowledges the role they have played in building TCS into one of the most respected and valued technology services companies in the world.” said N Chandrasekaran, CEO and MD of TCS.

The one-time reward for employees comes months after TCS announced 100 per cent variable payout for employees in January. TCS’ competitor Infosys had also announced 100 per cent variable bonus payout for its employees in January.

One-Time Bonus Hits TCS’ Q4 Profit

TCS reported a 29 per cent fall in its net profit in the fourth quarter ended March 31, 2015, on a sequential basis. Its net profit fell to Rs 3,858 crore in the fourth quarter. However, after excluding the impact of one-time bonus of Rs 2,628 crore, its net profit came at Rs 5,906 crore. This is higher than the estimates of Rs 5,392 crore based on an NDTV poll of analysts.

 

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