TCS announced to give 100% variable pay to about 70% of its employees

Tata Consultancy Services (TCS) has announced 100% variable pay to about 70% of its employees for the quarter ended June. The variable pay of the remaining employees will depend on the performance of their business unit.

Tata Group company Tata Consultancy Services (TCS) has announced to give 100% variable pay to about 70% of its employees for the quarter ending June. The variable pay of the remaining employees will depend on the performance of their business unit. The company also sent an email to the employees regarding this last week.

What is the rule according to grade?

TCS has grades for employees, such as entry level (Y trainee), then C1, C2, C3, C4, C5 and at the top is CXO. According to the company, all employees up to C2 grade will get their full quarterly variable allowance (QVA).

At the same time, the variable pay of senior employees of C3 grade and above will be decided based on the performance of their business unit. According to the news of Times of India, TCS Chief Human Resources Officer i.e. HR Head Milind Lakkad gave this information in an email.

Deliberation on annual salary hike is still going on

Although the company has given quarterly variable pay, a decision on annual salary hike (wage hike) has not been taken yet. The company says that this decision is yet to be taken due to the current economic situation (weak macro environment).

K Krithivasan, CEO of Tata Consultancy Services, said last week that there is a delay in taking decisions and starting projects by clients. The ongoing conflicts around the world, economic uncertainty and supply chain problems have also affected the business.

Increment deferred

Tata Consultancy Services (TCS) has deferred the increment of its employees for another quarter. The HR head confirmed this and said, “We are yet to take any decision on the salary hike cycle.” Earlier TCS used to implement salary hike on April 1 (beginning of the financial year) every year.

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