Tata Consultancy Services (TCS) has announced that 70% of its employees will receive 100% of their variable pay for the April–June quarter.
According to a report, the remaining employees will get their variable pay based on how well their business units have performed.
TCS sent out an email to employees last week with the update. In the email, TCS Chief Human Resources Officer Milind Lakkad mentioned that all employees up to the C2 grade level will receive the full Quarterly Variable Allowance (QVA).
However, for employees in the C3 grade and above, the amount of variable pay will depend on how their specific departments or units performed during the quarter.
Understanding the TCS Grade System:
- Y – Entry-level trainees
- C1 – Systems Engineers
- C2, C3, C4, C5 – Higher levels
- CXOs – Executive roles
As per the current announcement:
- Employees from Y to C2 grades will get full variable pay.
- Employees from C3 grade and above will get a variable amount based on performance.
A TCS spokesperson confirmed that this is a standard practice followed every quarter.
Read more: TCS Q1 Net Profit Rises 6%, But Revenue Growth Slows
Annual Salary Hikes Still on Hold
While the variable pay has been announced, the company hasn’t yet made a decision on annual salary hikes due to the current global economic challenges.
TCS CEO K Krithivasan recently said that project delays and slow decision-making by clients are still ongoing. He added that economic uncertainty, global conflicts, and supply chain issues have affected business activities this quarter.
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