TCS Rewards Employees with Full Variable Pay

In a significant move, Tata Consultancy Services (TCS), India's premier IT services firm, has announced that over 70% of its workforce will receive 100% of their variable pay for the April to June quarter. The remaining employees' compensation will be determined based on their respective business units' performance metrics.

Annual Salary Hikes Still Pending
Despite the consistent distribution of quarterly variable payments, TCS has yet to finalize its annual salary hike policy. This decision comes at a time when the company faces challenging economic conditions, including a revenue decline in dollar terms for three consecutive quarters.

HR Communication Highlights

Milind Lakkad, TCS's chief human resources officer, communicated via email that all employees up to C2 grade will receive their full Quarterly Variable Allowance (QVA). For those at C3 grade and above, payouts will vary based on business performance.

Workforce Growth Amid Challenges
TCS added 5,060 employees in the quarter ending June, bringing its total workforce to approximately 613,000. However, CEO K Krithivasan highlighted ongoing challenges, including delays in decision-making and project initiations, attributed to global conflicts, economic instability, and supply chain issues.

The company remains optimistic about a recovery in discretionary technology investments from clients once the economic landscape stabilizes.