TCS variable pay cut: TCS has cut the variable pay of thse employees for the second consecutive quarter, while junior staff has received the full amount. New rules related to the work from office policy were implemented, but even the employees who fulfilled the condition had to face a cut in variable pay.
TCS variable pay cut news: India’s largest IT services company Tata Consultancy Services (TCS) has cut the variable pay (performance based bonus) for its senior employees for the second consecutive quarter. The special thing is that this cut was made even when the employees fully followed the company’s work from office policy. However, junior employees have been given full payment.
Even in the last July-September quarter, some employees got only 20-40 percent of their quarterly variable allowance (QVA), while some were not given at all. This was much less than the amount given in the first quarter of FY 2025. Then this allowance was given up to about 70 percent. This has been revealed in an exclusive report of Moneycontrol.
An employee, while remaining anonymous, said, “I should have got around Rs 50,000 to Rs 55,000 QVA, but last quarter I got only half and this time it was even less, only a quarter was given.”
According to another source, 70 percent of the employees (mainly junior staff) were paid their full QVA in this quarter, while 30 percent of the senior employees got payment based on the performance of their business unit. Responding to the email sent by Moneycontrol, a TCS spokesperson said, “We do not comment on speculation.”
Restrictions related to work from office policy
Last year, TCS linked the variable pay of employees to work from office. As per the new HR policy, employees have to register at least 85 percent attendance to get their full quarterly bonus. If an employee consistently fails to complete it, disciplinary action can also be taken against him.
According to the company’s internal memo-
- Employees with 75-85 percent attendance will get 75 percent variable pay.
- Those with 60-75 percent attendance will get only 50 percent variable pay.
- Those with less than 60 percent attendance will not get quarterly bonus.
Salary hike on time
In the IT sector, TCS has been in a better position in terms of salary hike than its competitors (such as Infosys and HCLTech). TCS started salary hike in April 2024 (first quarter) itself, while Infosys, HCLTech and LTIMindtree postponed it till the third quarter.
In addition, TCS promoted more than 25,000 employees in this quarter, taking the number of employees promoted in the entire financial year to more than 1,10,000. This is about 20 percent of the company’s total workforce.
What did the Chief Human Resource Officer say?
TCS Chief Human Resource Officer (CHRO) Milind Lakkad said, “We promoted more than 25,000 associates this quarter, taking the total number of employees promoted this financial year to over 1,10,000. We are constantly investing in the skill development and well-being of our employees. Campus hiring is going on as per plan this year, and preparations are being made to include more freshers next year. ”
However, the company’s total employee count declined by 5,370 this quarter, which is a significant reduction after two consecutive quarters of growth. TCS expects demand for IT services to remain in the coming quarters. Despite a relatively sluggish market in the current quarter, the company has announced deals worth more than $10.2 billion in the pipeline, which is a strong indication for the times ahead.
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