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Tata Consultancy Services has reduced variable pay of senior employees for the third quarter ended December 2024 despite them adhering to the company’s work from office norms. This is the second consecutive quarter of the variable pay cut.
Senior employees receive their pay outs based on the business unit-wise performances in the company.
Tata Consultancy Services (TCS), India’s largest IT services company, has cut variable pay of senior employees for the third quarter ended December 2024 (Q3 FY25) despite them adhering to the company’s work from office norms, according to a Moneycontrol report citing sources. This is the second consecutive quarter of the variable pay cut.
In the previous July-September quarter also, some employees had got only about 20-40 percent of their quarterly variable allowances (QVA) while others had even got zero per cent of it. This was very less as compared to the QVA given out in Q1FY25 which was nearly 70 percent.
“I was supposed to get Rs 50,000- Rs 55,000 in QVA, but ended up getting half last quarter and this quarter it was even less, at a fourth,” according to the Moneycontrol report citing an employee.
Citing another source, the report said almost 100 per cent of the QVA was paid out to 70 per cent of the employees, mostly junior staff, while the remaining 30 per cent of senior employees received their pay outs based on the business unit-wise performances in the company.
Last year, TCS had linked work from office attendance to variable pay out of employees. The HR policy was updated expecting minimum 85 percent attendance of employees in office for them to receive full quarterly variable pay.
