Even as many fear pay cuts and job losses due to the economic fallout of the coronavirus pandemic, IT firm Capgemini has reportedly offered increments to nearly 70% of its staff, effective April 1.
According to a Times of India report, 84,000 of its 1.2 lakh employees (at A and B grades) received high single digit hikes (percentage) and the rest are expected to get hikes in July. The company also told TOI that there are no discussions of pay cuts.
It has also made variable payouts to eligible employees and has reportedly said that promotions that were to happen in April will be announced in June and will be effective from July 1.
It is also reportedly paying salaries to those benched right now without projects in hand. This is important because companies usually let go of employees who do not bag a billable project for over 60 days.
As per the TOI report, the IT firm is also offering Rs 10,000 cash to those stranded without accommodation.
At Capgemini, 95% of the workforce is currently working from home.
As per the report it has also set up a Rs 200 crore fund to help employees with medical emergencies.
This move by Capgemini comes after Cognizant announced that it will be giving two-thirds of its employees (associate level and below) 25% of their base salary as an additional payment to their paycheck for the month of April. However, while announcing its financial results for the quarter, the US-based IT firm withdrew its revenue forecast for the year 2020 amid uncertainties amid the pandemic.
Wipro too, which announced its Q4 and FY20 results on Wednesday suspended revenue growth guidance citing uncertainty amid the pandemic as well. It said that it will resume providing revenue guidance after it sees “increased certainty” on demand and supply side factors.