In good news for TCS (Tata Consultancy Services) employees, the corporate giant has announced a 100 percent quarterly variable pay for more than 70 percent of its employees for the April-June period.
Company’s chief human resources officer, Milind Lakkad, sent a mail which read, “All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100 percent of the Quarterly Variable Allowance (QVA). The individual pay-out for the C3 grade and above may vary, depending on business performance.”
TCS said the decision was made “in line with our standard practice across quarters.”
Variable pay is defined as additional money that a company gives to its employees every three months. It is seperate from the regular monthly salary.
Variable pay is based on the overall performance of the company and the employee. If both are doing well, you can get 100 percent of this extra pay.
However, the decision on annual wage hikes remains on hold.
The company’s internal grade structure begins at Y for entry-level trainees, followed by levels C1 through C5, with senior roles starting from the C3 band upwards. While employees received their variable components, uncertainty looms over salary increments for the year.
TCS reported a decline in dollar revenue for the third consecutive quarter. During Q1 of FY26, it added 5,060 employees, bringing its total workforce to approximately 613,000, the Economics Times reported.
According to CEO K Krithivasan, client decision-making and project kick-offs were reasons for the continued delays. “Discretionary tech spending has remained weak due to global conflicts, economic uncertainty, and supply chain issues,” he said.
