India's largest IT firm Tata Consultancy Services (TCS) has rolled out 100% quarterly variable pay to 70% of its employee base while the rest of the employees have received variable pay in the lower range and depending on the performance of their respective business units.
“We have paid out 100% QVA (Quarterly Variable Allowance) to over 70% of the company. For all other grades, the QVA depends on their unit’s business performance. This is in line with our standard practice across quarters,” TCS said in a statement.
In April, the company management spoke about a delay in the annual wage hike amid the macro environment considering the uncertain business environment. “We will decide within the year when to make that happen,” chief HR officer Milind Lakkad had said during the quarterly results earlier this year.
The grade structure at the Tata subsidiary typically starts with entry level at Y as trainees, Systems Engineer roles at C1, which goes up to C2, C3 – A&B, C4, C5 and CXOs.
Employees in the C3B and above band are likely to fall in the senior category.
Also Read: 'We can continue this momentum': TCS CEO Krithivasan on surpassing $30 billion revenue mark
With nearly 6.8 lakh total employees, between January to March, TCS added 625 employees and 6,433 were added in the full year starting April 2024.
“Many employees from business units with good performance such as BFSI (banking, financial services and insurance) have been granted 100% of the variable pay while those segments or verticals which have reported poor growth performance have given their employees lower payouts,” an employee said.
The lower QVA is in line with the performance of the company and the industry especially which dipped in the first quarter due to the tariff impact that slowed the expected business demand.
In the fourth quarter ending March, the IT bellwether reported a weaker-than-expected performance with net profit falling 1.68% year-on-year (YoY) and 1.26% sequentially to Rs 12,224 crore. Revenue from operations, meanwhile, rose 5.3% YoY and 0.8% quarter-on-quarter to Rs 64,479 crore.
A large part of the business demand slowed in key sectors such as consumer, life sciences & healthcare, manufacturing, communications and media.
Last year, some employees witnessed a reduction in variable pay for non-adherence of its Return-To-Office (RTO) policy mandating to work from office five days a week. TCS had linked the QVA to a minimum 85% attendance of employees in office for them to receive full quarterly variable pay. Further, non-compliance of the policy may also lead to disciplinary actions being taken, the company had said.
Also Read: TCS to delay salary hikes on uncertain business environment
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In April, the company management spoke about a delay in the annual wage hike amid the macro environment considering the uncertain business environment. “We will decide within the year when to make that happen,” chief HR officer Milind Lakkad had said during the quarterly results earlier this year.
The grade structure at the Tata subsidiary typically starts with entry level at Y as trainees, Systems Engineer roles at C1, which goes up to C2, C3 – A&B, C4, C5 and CXOs.
Employees in the C3B and above band are likely to fall in the senior category.
Also Read: 'We can continue this momentum': TCS CEO Krithivasan on surpassing $30 billion revenue mark
With nearly 6.8 lakh total employees, between January to March, TCS added 625 employees and 6,433 were added in the full year starting April 2024.
“Many employees from business units with good performance such as BFSI (banking, financial services and insurance) have been granted 100% of the variable pay while those segments or verticals which have reported poor growth performance have given their employees lower payouts,” an employee said.
The lower QVA is in line with the performance of the company and the industry especially which dipped in the first quarter due to the tariff impact that slowed the expected business demand.
In the fourth quarter ending March, the IT bellwether reported a weaker-than-expected performance with net profit falling 1.68% year-on-year (YoY) and 1.26% sequentially to Rs 12,224 crore. Revenue from operations, meanwhile, rose 5.3% YoY and 0.8% quarter-on-quarter to Rs 64,479 crore.
A large part of the business demand slowed in key sectors such as consumer, life sciences & healthcare, manufacturing, communications and media.
Last year, some employees witnessed a reduction in variable pay for non-adherence of its Return-To-Office (RTO) policy mandating to work from office five days a week. TCS had linked the QVA to a minimum 85% attendance of employees in office for them to receive full quarterly variable pay. Further, non-compliance of the policy may also lead to disciplinary actions being taken, the company had said.
Also Read: TCS to delay salary hikes on uncertain business environment
