IT Firm Capgemini India Provides Hikes & Increments for 84k Employees, Sets Up Rs 200 Cr Fund for Medical Help

New Delhi: As the coronavirus pandemic ravages economies around the world, this French IT services firm has taken a bold step.

Capgemini, which currently has about 1.2 lakh employees in India has decided to provide high single-digit hikes for 70% of its staff in the country -- 84,000 people, states a report by the Times of India.

The remaining people will receive their increments in July. However, that's not all.

Among the measures meant to aid in the welfare of employees, the firm is also providing up to Rs 10,000 as cash allowance to those who do not have a paying guest accommodation.

Those employees on the bench -- without billable projects -- will be retained and their salaries will be paid without a timeline being put around it, the report further states.

These decisions were taken at Capgemini's first virtual meeting, that took place in mid-March.

Various companies give a grace period of about 60 days to bench employees to find a billable project. If they fail to do so, they are asked to go. And most IT companies on an average have about 6 to 8 per cent of their workforce on the bench.

Capgemini India CEO Ashwin Yardi said this was a black swan event and it was not a question of timeline, but how the business would evolve.

He said the company had a clear view about how the economic model would look like and there wasn't any reason to discontinue the approach.

Capgemini extended its shift allowance to employees working from home, as well.

About 95% of the employees are now working from home.

When it comes to promotions, the company will make those scheduled for April effective from July 1, and they will be announced in June. Variable payouts have been provided to all eligible employees along with the March payroll.

The leadership team is also not expecting a pay cut. Yardi said that all employees at A and B grades had got their hikes and increments.

He said that for cost-containment measures, there were many other levers.

A Rs 200 crore fund has also been set up by Capgemini India. It will be used for medical emergencies of any employees who require it beyond medical insurance for themselves or their families.