New Delhi, May 6: Tata Consultancy Services (TCS), the largest IT services company in India, has rolled out 100% of the quarterly performance-based variable pay to 70% of its workforce for the January -March quarter. The policy reportedly started in April 2024.

As per reports, employees who come to the office less than 60% of the time will not receive any variable pay. Those who attend between 60% and 75% will receive 50%, while employees who are present between 75% and 85% will get 75%. Employees who are attending the office more than 85% of the time will qualify for the full variable pay. TCS Q4 Results-Hiring Updates: Tata Consultancy Services Adds 625 Employees in Q4 of FY25, Reverses Workforce Decline From Previous Quarter.

TCS has a total workforce of approximately 6.8 lakh employees. Between January and March, the company added 625 new employees. Over the entire year, starting from April 2024, TCS added a total of 6,433 employees. Employees receive variable pay every quarter, but the amount they get can change each time. The quarterly payout depends on how well each employee performs and also how well their specific business unit or department is doing.

As per a report of Economic Times, TCS has rolled out 100% quarterly variable pay to 70% of its employee base. Meanwhile, the remaining employees have received variable pay at lower levels, which varies based on the performance of their specific business units. Money Control reported, TCS has slashed the variable pay for its senior employees for the third quarter in a row.

A TCS employee reportedly said, “For senior employees, variable pay forms 15-20% of the CTC (cost to company). They (the company) have been deducting the QVA (quarterly variable allowances) for over a year now. In the last quarter, I got about 20% of my variable pay out”. However, TCS said, “We 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.” Cognizant To Hire 20,000 Freshers in 2025, More Than Double From Last Year’s Recruitment.

As per Economic Times, an employee said, “Many employees from business units with good performance such as BFSI (banking, financial services and insurance) have been granted 100% of the variable pay while those segments or verticals which have reported poor growth performance have given their employees lower payouts.”

(The above story first appeared on LatestLY on May 06, 2025 12:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).