Employee Cost

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Employee Cost

Explanation: Employee Cost refers to the total expenses incurred by a company in relation to its employees. It includes salaries, wages, bonuses, benefits, and any other related expenses associated with the employment of staff. Employee cost is a significant component of a company’s operating expenses and is reflective of its investment in human capital and workforce management.

Example: TCS had an Employee Cost of 127,509 crore as of FY23. This indicates that TCS incurred expenses totaling 127,509 crore for compensating its employees during the fiscal year. Employee cost is a critical factor in assessing a company’s operational efficiency and competitiveness, as it reflects the company’s commitment to its workforce and its ability to attract, retain, and motivate employees. Monitoring changes in employee cost over time can provide insights into trends in labor expenses and workforce management strategies within the company.

You can view the Effective Tax Rate value for any company on Radar under Total Expense in the Quarterly Results or Yearly P/L sections.

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