TCS employees rejoice! Ratan Tata’s company to pay 100% variable pay to…, senior employees payout depends on…; Here’s what we know

Tata Consultancy Services (TCS) has announced that it will pay variable bonuses for the September quarter. Junior-level employees will receive 100 per cent of their Quarterly Variable Allowance (QVA). The payments will be included in the October 2025 payroll. For mid-level employees in grades C, C1, and C2, the full variable pay will also be given. For employees at C3A and above, the bonus will depend on the performance of their business units and the overall company results for the quarter.

In addition, TCS has started its annual salary hikes for employees up to grade C3A, with high performers receiving double-digit increments.

The company’s Chief HR Officer, Sudeep Kunnumal, said that junior employees have consistently received 100 per cent of their quarterly bonus, and this will continue in the coming quarters. He explained that the variable pay is given to almost all eligible employees, except maybe very new hires. Senior employees will get bonuses based on their individual performance and the performance of their teams.

TCS letter to employees on variable pay

According to a report by The Economic Times, junior-level employees at TCS in grades C, C1, and C2 will receive both their annual salary hikes and full variable pay, as they fall under the lower salary brackets. However, employees at C3A level and above may receive variable pay differently, depending on business performance, according to a TCS employee cited in the report.

In an email to employees, TCS CHRO Sudeep Kunnumal wrote: “All employees up to C2 grade (or equivalent) covered under the Quarterly Variable Allowance (QVA) plan will receive 100 per cent of the QVA. For C3A grade and above (or equivalent), the individual payout may vary depending on business performance. I am glad to inform you that the overall QVA payout for this segment will be higher than last year. The actual payout will depend on the performance of the business unit.”

It is to be noted that TCS saw its employee count drop by nearly 20,000 in the September quarter, bringing its total workforce down to 5.9 lakh. This is the largest reduction in the company’s history and is higher than what the market had expected.

News