Bad news for employees of this company as it decides to cut Variable Pay for…, not Narayana Murthy’s Infosys, Azim Premji’s Wipro, Google, name is…

Bad news for TCS employees: In a significant development impacting the employees of Ratan Tata’s Tata Consultancy Service (TCS), the company has announced the reduction of variable pay of its senior employees for the third consecutive quarter. As per a report by Moneycontrol, the IT company has decided to go for the variable cut of the senior employees for the December quarter. Here are all the details you need to know about the recent announcement by TCS.

The report has quoted the chief human resource officer (CHRO) Milind Lakkad as saying that the decision on the wage hike will be taken within the year. Earlier, India’s largest IT services firm Tata Consultancy Services reported a 1.68 per cent dip in its consolidated net profit to Rs 12,224 crore for the March 2025 quarter, as per a report by news agency PTI.

For a background, TCS had first cut senior staff’s variable pay for the September quarter after linking the salary component to office attendance, a report by the Economic Times said.

TCS quarter results

Tata Consultancy Services (TCS) – whose earnings marked the official start of IT results season – reported a total revenue of Rs 64,479 crore in Q4 FY25, up 5.3 per cent over the year-ago period. For the full year FY25, TCS’ net profit rose 5.76 per cent year-on-year to Rs 48,553 crore. Milind Lakkad, Chief HR Officer of TCS, said the trainee onboarding in FY25 was 42,000 as planned.

Meanwhile, the TCS board has recommended a final dividend of Rs 30 per equity share of Re 1 each of the company. TCS’ Q4 report card comes amid storm clouds over the global economy triggered by US now-on, now-off tariff posturing that has thrown the world into a tizzy.

(With inputs from agencies)

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