BENGALURU: The country's largest IT services company Tata Consultancy Services (TCS) on Monday rejected reports that claim the company slashed variable pay for senior employees.
TCS said in a statement that they have paid out 100% QVA (Quarterly Variable Allowance) to over 70% of the company. "For all other grades, the QVA depends on their unit’s business performance. This is in line with our standard practice across quarters," the statement added.
While 70% received the full variable allowance, the rest received the pay according to the unit's performance. Variable pay is paid out quarterly to employees, and every quarter it differs according to employees as well as the unit's performance. In Q2, the company had paid out 100% variable pay to junior grades.
Earlier during the company's Q4 earnings conference, it said that wage hikes will be decided during the year. Every year, the company gives hikes, effective April 1.
Milind Lakkad, Chief HR Officer, had said, "Considering the uncertain business environment, we will decide during the year when to make that happen."
IT services company Wipro too recently said it will decide on the wage hike closer to the next appraisal cycle. "We are still quite far from the next cycle. In this uncertain environment, we will decide on wage hikes closer to the date,” Saurabh Govil, Wipro’s Chief Human Resources Officer (CHRO) said during the post-earnings press conference.
A large part of wage increments was rolled out by Infosys in January and the balance was rolled out, effective from April 1.