Tcs compensation structure

1. TATA CONSULTANCY SERVICES
Tata Consultancy Services (TCS) employs over 15000 professionals, has offices in 23 countries
and projects in 50 countries across the world, and revenues around $700 million. Among its
clientele are number of Fortune 500 companies and it is in the league of 30 top IT consulting
firms in the world. 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. The company has now set its sights on becoming a truly global organisation. Its
vision is to be among the top 10 IT consulting organisations in the world, a global employer of
choice.
EVA Based Compensation Model
TCS is looking towards institutionalising leading edge practices in hiring, training, and people
care, with and 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 benefit 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 on the basis of corporate EVA
improvement. Secondly, if your business unit did better than another business unit, then
automatically you got 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.

2. COMPENSATION STRUCTURE
COMPONENTS
Component- A
Basic Salary
Sub Total A
Annual Basic Salary (A X 12)
Component- B:- Allowance/Reimbursement
Special/Grade allowance/Personal Allowance
House Rent Allowance
Children Education Allowance
Professional Dev. Reimbursement
Food coupons
Business Promotion Reimbursement
Medical Reimbursement
Driver Allowance
Leave Travel Allowance
Conveyance Allowance
Petrol Reimbursement
Others
Sub Total B
Sub Total (B X 12)
Annual Fixed Guaranteed Cash (A+B X 12)
Component C- Variable Pay

3. Performance Pay
Annual Bonus/Ex-Gratia
Sub Total C
Sub Total (C X 12)
Annual Total Cash [(A+B) X 12]+[C X 12]
Component D- Retirals
Provident Fund
Gratuity
Superannuation
Sub Total D
Sub Total (D X 12)
Component E- Valued Perquisites
Company Car value
Hard Furnishing/Assets
Mediclaim Insurance Premium
Telephone/Mobile Reimbursement
Others
Sub Total E
Sub Total (E X 12)
Monthly Total Cost to The Company
(A+B+C+D+E)
Annual Total Cost to The Company
(TCC X 12)

4. 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

5. 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.
Hard Furnishing/Assets: Senior Management Personnel are entitled for certain assets under this
scheme at their residence subject to a maximum amount mentioned below. The assistance
availed by the manager is renewable once in four years. The entitlement amount includes
company air conditioners at residence, which was earlier given in addition to the hard furnishing
assistance.

6. 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):
 Salary of a TCS new Fresher’s 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 year):
 Salary will be Rs 380000-400000/year
 TCS employee will get two increments in this year. Once for completion of two years &
another in April appraisal increment
Salary of System Engineer in TCS (Experience of 3 year):
 Salary will be Rs 420000- Rs 460000/year
Salary of IT Analyst in TCS (Experience of 4 year):
 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 year):
 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 salary of
Rs 1000000 per year.

7. Salary of Consultant in TCS:
 TCS employee having Consultant post receive a salary of Rs 1200000- Rs 1400000/year
Salary of Senior Consultant in TCS:
 TCS employee promoted to Senior Consultant receive a annual salary of Rs 1800000-Rs
1800000/year.
Salary of Principle Consultant in TCS:
 TCS employee promoted to principle consultant post receives an annual salary of Rs
2600000- Rs 3000000.
After completion of 5 years in TCS, TCS employees generally get 10% average increment in
April every year.
TCS MD salary & TCS Vice president has been decided by TCS board & is not disclosed.
Source: www.citehr.com