TCS Announces 100% Quarterly Variable Pay for Over 70% Employees

TCS announces full Q1 variable pay for most staff; senior payouts vary as macro challenges delay annual hikes.

Over 70% of workers at Tata Consultancy Services, the biggest IT Service Company in India would receive 100% quarterly variable pay for the April–June period. The remaining staff members' compensation will be determined by how well their business units perform.

All employees up to the C2 grade (or equivalent levels) who are part of the QVA plan will receive the full 100% of their Quarterly Variable Allowance. In an email sent to staff last week, Chief Human Resources Officer Milind Lakkad stated that the individual payout for those with a C3 grade and higher may change based on company performance.

The grade structure at the Tata Group firm generally starts with trainees at the Y level, progressing to systems engineers at C1, then moving up through C2, C3-A, C3-B, C4, C5, and finally to CXO positions. Workers in the C3 and higher bands are considered senior employees. TCS attested to the variable allowance's payment. In response to ET's inquiries, a representative stated that the payment conditions are consistent with their regular practice throughout the quarter.

Due to a difficult macroenvironment, the company has reported a decline in revenue in dollars for three consecutive quarters, even though it has paid out variable components on time for each quarter. The management has yet to decide on yearly pay raises. During the quarter ending in June, the leading IT firm expanded its workforce by 5,060 employees, raising its total headcount to approximately 613,000. The head of TCS noted that although discretionary expenditure is still low across all industries, it should increase once the macroenvironment is clearer.