
Why does TCS not pay employees although they show good profit in their balance sheets

Almost 72% of TCS shares are held by Tata sons. The parent company of entire tata group. So every time TCS pays a hefty dividend, tata group is the direct beneficiary of it. For example, last year TCS paid approx 33k cr. Dividend. Out of that, almost 24kcr. Went directly to tata sons.
Now that money tata sons need to deploy across multiple new businesses like air india, tata digital etc. and survive existing loss making businesses as well. So more the dividend it will get, it will deploy it freely.
To get more dividends, you need more profits. For that you need to reduce expenses. Employee salary alone is approx 50% expense for IT companies.
So reduce the cost, they will have to cut money from our salaries.
So this will continue going forward as well.

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