NEW DELHI: Salt-to-software conglomerate Tata Group's holding company Tata Sons has restored staff salaries across several operating entities and will likely announce pay increases in 2021. This comes after almost a year of  top executives taking an estimated 20 per cent pay cut to hold down costs through the Covid-induced economic downturn.

TCS, Voltas, Tata Consumer, Titan, Tata Motors, Tata Chemicals, Tata Power, Tata Steel, Trent, and TataCapital are among the group blue-chip entities that have already announced pay increases and staff bonuses. Top group officials said they are optimistic about India's growth story, with the country likely regaining its position as the world’s fastest-expanding major economy.

Compensation of top management executives is being restored by the end of this month and pay increases are being finalised across group companies.

Tata Sons director Bhaskar Bhat told the Economic Times (ET) that there is optimism about business prospects in the country.

"Businesses in smaller towns are roaring and I am very optimistic about the Indian consumer,” Bhat said. “The wheels of growth are driven by the consumer. The group focused on protecting its employees last year and kept costs in check. Going ahead, profits will be driven by business growth too."

According to media reports citing highly placed sources within the company, significant cost compressions such as electricity, security, and food costs have gone straight to the bottom line. Reports further stated that monthly business disbursements are back to similar or higher levels than last year.

"Our employees have shown great resilience and commitment toward their roles despite health concerns and we find it appropriate to acknowledge and reward their contribution to growth," a Tata Capital spokesperson told ET.