In an attempt to promote employee welfare, French IT services giant Capgemini has recently announced that it has given a single-digit salary hike to 70 percent of its employees in India, effective April 1, 2020. The move will benefit the company’s 84,000 employees of its 1.2 lakh Indian workforce. The company has also said that the rest of the employees will get the increments in July.
According to a report by The Times of India, the IT major will also be providing cash allowance of up to Rs 10,000 to employees who have got stranded due to the nationwide lockdown to curb the spread of the novel coronavirus and do not have a paying-guest accommodation either. These decisions were taken by the company at a meeting held in mid-March before the lockdown had been announced.
In a statement to the newspaper, Capgemini India CEO Ashwin Yardi said that irrespective of client furlough periods and bench time, employees will get their salaries.
“This is a black swan event and at this point it’s not a question of timeline, but how our business will evolve. And we have a clear view as to what our economic model is going to look like and we don’t see any reason to discontinue this approach,” he said.
The company also said that promotions scheduled for April will be effective July 1 and will be announced in June. The company has made variable payouts to all eligible employees along with the March payroll.
Commenting on whether the company is giving any pay cuts to its leadership team, Yardi said, “All employees at A and B grades (84,000 employees) have got their hikes and others will get increments in line with our plan. There’s no discussion within the leadership of Capgemini India for a pay cut.”
Capgemini India has also set up a 25-million-euro (Rs 200-crore) benevolent fund, the proceeds of which will be used for medical emergencies for any of the employees who need it beyond their medical insurance or for their families.
Meanwhile in other news, an IT union in Maharashtra has taken strong objection to the move by IT giant Capgemini asking its employees to apply for leave in the beginning of the April month.
In a written complaint to Chief Minister Uddhav Thackeray, the National Information Technology Employees Sena has sought action against the company. However, the firm said this was only an interim measure.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.