TCS bonanza: Rs 2,628cr bonus for staffers Photogallery

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TCS bonanza: Rs 2,628cr bonus for staffers

The Diwali windfall has come six months early for 2.5 lakh employees of software services giant Tata Consultancy Services (TCS). India's biggest private sector employer and top recruiter of women will dole out a special reward amounting to Rs 2,628 crore ($423 million), probably the biggest-ever bonus payout by an Indian company. (PTI)

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TCS will gift staffers one week's salary for every year of service completed, to mark 10 years of its listing on the Indian bourses. Staffing firms said this marked a feel-good factor for India Inc at the beginning of the new financial year. (PTI)

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The 51-year-old Chandrasekaran, the second highest paid professional CEO in India's IT services sector, joined TCS as a programmer in 1987 and rose to become its boss in 2009. (PTI)

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"The 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 Chandrasekaran. (BCCL)

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While TCS employs over 3 lakh people worldwide, onethird of them women, the bo nus will be applicable to those staffers, based in the country and outside, who have completed at least a year in service. (BCCL)

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The provision for a onetime bonus, which has dragged down TCS' FY 15 fourth-quarter profits by nearly 31% to Rs 3,713 crore, comes nine months after TCS shelled out Rs 7,835 crore as special dividend to its six lakh shareholders on completing a decade of listing. (BCCL)

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The software arm of the Tata Group went public in 2004 and is today India's most valuable company with a market capitalization of Rs 5.06 lakh crore. (BCCL)

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Kamal Karanth, MD, Kelly Services said, "Recruitments have picked up in the industry . TCS' competitors, as also e-commerce companies, are hiring C-level executives. These factors could have led TCS to give out a bonus to retain its critical talent.'' Historically TCS has been known as a conservative pay master, compared with other IT companies like Infosys which rewarded staffers with stock options and has created millionaire employees. In 2010, Infosys had issued bonus shares worth Rs 159 crore to its employees to mark its 30th anniversary . Start-ups too are offering great salaries to woo high potential talent.

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TCS has an attrition rate of 14% in the Indian IT sector, which is considered to be moderate. "Typically the IT sector is very competitive in terms of talent and we constantly see the larger players devising ways of retaining their talent through interesting monetary or non-monetary measures, especially during the appraisal season when attrition tends to hit an all-time high. While the magnitude of these perks and bonuses may vary across companies, depending on their performance, it is an employee retention strategy ," said Moorthy K Uppaluri, CEO, Randstad India.

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The bonus and financial results were announced after market hours. TCS shares were, however, down 2% to close at Rs 2,574 in a weak Mumbai market on Thursday .