TCS News: The country’s largest software exporter Tata Consultancy Services has given a big shock to senior employees. The company has cut their variable pay for the second consecutive quarter.
Earlier in the September quarter also, the company had given a big shock to the employees when some employees were given only 20-40 percent of the quarterly variable allowance (QVA) while some did not get anything at all, that is, they got zero percent quarterly variable allowance. Earlier in the June quarter, they had received about 70 percent QVA. In this matter, a TCS spokesperson said that he does not comment on speculation.
Full variable pay to junior employees
A source said that they were expecting 50-55 thousand QVA in the last quarter but got only half of it and now this quarter it is expected that they will get even less, about a quarter. Another source said that about 70 percent of the employees got nearly 100 percent QVA in the third quarter, most of which were junior employees. The remaining 30 percent senior employees got QVA according to the company’s business unit-wise performance.
what are the rules
Last year, TCS had linked variable pay to employees’ work from office attendance. Under the HR policy, a provision was made to give 100 percent variable pay to employees if at least 85 percent attendance is from the office. A provision was made to give 75 percent of the variable pay if 75-85 percent attendance is from the office, only 50 percent for 60-75 percent attendance and zero quarterly bonus if attendance is less than 60 percent.
What is the situation regarding salary hike?
The IT sector is facing the challenges of sluggish demand globally, which is also affecting the employees. However, talking about salary hike, TCS went ahead of Infosys and HCL Tech in this matter, which increased the salary from the first quarter of this financial year, while Infosys, HCL Tech and LTI Mindtree postponed it till the third quarter or later.
The company promoted more than 25 thousand employees in the December quarter and thus, in the financial year 2025, about 20 percent i.e. more than 1.10 lakh employees have been promoted so far. The company’s Chief HR Officer Milind Kakkar says that preparations are underway to hire more from campus. In the December quarter, the company’s total workforce decreased by 5370, which was a decline after two consecutive quarters of increase.
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