India's major information technology firms have encountered substantial one-time financial charges following the implementation of the new labour code. The regulatory change has directly impacted gratuity and leave liabilities across the industry.
Top IT Companies Record Significant Provisions
Tata Consultancy Services (TCS) absorbed the largest charge at Rs 2,128 crore. This substantial amount reflects the company's extensive workforce and corresponding liabilities under the updated regulations.
Other Major Players Also Affected
Infosys reported a charge of Rs 1,289 crore, positioning it as the second most impacted firm. HCLTech followed with Rs 956 crore in provisions.
Wipro recorded a charge of Rs 302 crore, while Tech Mahindra faced Rs 272 crore in additional liabilities. These figures collectively illustrate the widespread financial impact of the labour code adjustments.
Non-Recurring Nature of Charges
Industry analysts emphasize that these provisions are largely one-time in nature. They stem from recalculating existing employee benefits to align with the new legal framework.
Regulatory Adjustments Continue
IT companies are navigating ongoing regulatory changes while managing workforce costs. The balance between employee benefits, productivity, and margin pressures remains a critical focus for corporate leadership.
The implementation process highlights how national policy shifts directly affect corporate financial statements. Companies must now account for revised benefit structures in their quarterly and annual reporting.
