Bad news for Ratan Tata’s TCS employees as IT company decides to…, set to affect around 2 lakh employees due to…

India’s biggest IT company, Tata Consultancy Services (TCS), has announced that more than 70 per cent of its employees will receive 100 per cent of their quarterly bonus (variable pay) for the April to June period. For the remaining 30 per cent of employees, primarily senior staff, receiving variable pay will be  based on their unit’s business performance.

In an email to staff last week, TCS’s Chief Human Resources Officer, Milind Lakkad, said, “All employees up to the C2 level will get 100 per cent of their Quarterly Variable Allowance (QVA). For those in C3 and above levels, the bonus may vary depending on business results.”

TCS later confirmed this decision, saying it follows the company’s usual quarterly policy for bonus payouts.

TCS holds off on salary hikes amid global uncertainty

Although Tata Consultancy Services (TCS) has continued to pay quarterly bonuses on time, it has not yet announced annual salary hikes. The delay comes as the company faces a challenging global environment and has reported a drop in dollar revenue for three consecutive quarters.

TCS CEO K. Krithivasan explained that global uncertainties such as conflicts, economic instability, and supply chain problems  have caused disruptions across industries.

He noted that discretionary tech spending (extra investments made by clients in technology) remains low, which is important for companies like TCS to grow. However, he added that this spending is expected to recover once the global economic outlook becomes clearer.

TCS sees steady hiring and promotions in FY25

According to Financial Express, in the January–March quarter, TCS added 625 new employees, bouncing back from a decline of 5,370 employees in the previous quarter. By the end of March 2025, the company’s total headcount was at 607,979, marking a net increase of 6,433 employees over the full financial year.

In FY25, TCS also promoted 110,000 employees, with promotions distributed fairly across all four quarters.

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