Senior TCS Staff To Miss Quarterly Variable Pay After Company Misses Performance Targets
Senior staff at TCS (grade C3A and above) will receive no quarterly variable pay after performance fell short of internal targets, according to an internal memo. Junior employees will receive 100 per cent of their eligible pay. The decision comes as TCS reported its weakest September-quarter sequential revenue growth in three years.
Senior employees at Tata Consultancy Services (TCS) will not receive quarterly bonuses for the September quarter after the company fell short of internal performance targets, according to an internal memo sent by Chief Human Resource Officer Sudeep Kunnumal. The move marks the first time in at least two years that India's largest IT services exporter has completely withheld variable pay for a section of its workforce.
Senior Grades Impacted While Junior Staff Retain Full Allowance
The decision specifically affects mid-to-senior level professionals within the organization's corporate structure, reports Reuters. "For associates C3A grade and above, there will be no QVA (quarterly variable allowance) this quarter. This decision was taken after careful consideration as our performance for the quarter fell short of internal targets," said Sudeep Kunnumal, chief human resource officer in the memo. US Moves to Bar TCS From Green Card Programme; Here’s the Company’s Response.
Employees in C3A and above grades typically have 7 to 10 years of experience, extending up to senior-level management. The junior-level employees will get 100 per cent of the eligible pay, the memo added. Employees, speaking on the condition of anonymity, said typically the company awards 50-100 per cent of variable pay, and it is the first time in at least two years that the company has explicitly said no bonuses shall be awarded. Mails sent to TCS did not elicit a response.
Revenue Growth Pressures Amid AI Momentum
The bonus pause comes as TCS reported its weakest September-quarter sequential revenue growth in three years, signalling continued pressure on traditional IT services demand even as AI-related revenue jumped nearly 20 per cent. Despite the sluggish sequential growth, the uptick in AI revenue was cheered by investors on Friday as the stock rose as much as 6.2 per cent. Indian IT Giants Infosys, TCS, Wipro, HCL Suspended From US PERM Programme: What It Means For Green Card Applicants.
Wider Sector Challenges
The developments unfold amid broader geopolitical headwinds for Indian technology firms. India's USD 315 billion IT sector is also facing uncertainty stemming from the Trump administration, which suspended major IT outsourcers including TCS, Infosys, and HCLTech from a key green-card program on Thursday, widening a crackdown it says targets fraud and protects American jobs.
(The above story first appeared on LatestLY on Oct 10, 2026 12:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
