BENGALURU: Tata Consultancy Services (TCS) has reduced variable pay of its senior-level employees in the September quarter compared to the previous quarter.
Sources said though many senior-level employees received variable pay, it was linked to work from office index and if it was below 85% means, it will affect variable pay. Last quarter, it had paid 70% and it depends on business unit performances too.
The company told TNIE, “For Q2, we have paid out 100% QVA (quarterly variable allowance) to junior grades across the company. For other grades, QVA depends on unit’s business performance. This is in line with our standard practice across quarters.”
Earlier in February, it had asked employees working from home to return to office. It linked hikes and variable payout on their compliance with return to office mandate. Infosys is said to have paid 80% variable pay to employees.
TCS’ workforce at the end of Q2 was 612,724 and it added a net 5,726 employees in the quarter. During Q2 earnings call, chief HR officer Milind Lakkad said they remain on track for fresher onboarding as planned for the year and have commenced process for recruiting freshers through the National Qualifier Test for FY’26.