Capgemini announces salary hike to 84,000 employees in India

French tech major, Capgemini has a welcoming news for Indian techies. The company has announced salary hike to 70% of its workforce in the country. Capgemini has a headcount of 1.2 lakh employees in India.

The Covid-19 pandemic has created uncertainty around jobs. Several companies have announced salary cuts. The pandemic has brought economic activity to a standstill. Capgemini’s decision is praised across the country. Over 84,000 employees of Capgemini will receive a single-digit salary hike. The salary increment suggests that the jobs in IT are here to stay. The move will boost the confidence of IT professionals across India.

Capgemini has also announced cash allowance of up to Rs 10,000 to employees who have got stranded due to the lockdown. The company made these decisions at a meeting held in mid-March before the lockdown was announced.

Ashwin Yardi, Capgemini’s India CEO said, “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.”

The company has no plans to layoff any employees either. Capgemini plans to retain the employees on the bench. Those who are currently on assigned on any project will continue to get their salaries without setting any timeline.

95% of the company’s workforce is working from home. Capgemini has extended its shift allowance for these employees. The CEO Yardi re-assured that there is no discussion within the India leadership to introduce pay cuts.