New Delhi, July 15: Tata Consultancy Services (TCS) has reportedly taken a key decision regarding variable pay for its employees for the April to June period. The development is said to affect a large number of workers across various departments. Reports suggest that a portion of the staff is set to receive their variable pay soon.

It is said that TCS will offer variable pay to a majority of its employees this quarter, but the payout structure might not be the same for everyone. As per reports, the rest of the workforce will see their variable pay determined by the performance of their respective business units. Infosys HR Tracking Employees, Implements Monitoring System To Send Warning Emails; Know Why.

As per a report of Economic Times, TCS, the country’s biggest IT services company, has reportedly decided to give full quarterly variable pay to over 70% of its staff for the April to June quarter. The remaining employees, however, may not receive the same payout structure. Instead, their variable pay is said to depend on how well their specific business units performed during the quarter.

As per reports, The Economic Times has reviewed an internal email sent by TCS’s Chief Human Resources Officer, Milind Lakkad, to employees last week. In the email, Lakkad reportedly stated, “All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100% of the Quarterly Variable Allowance (QVA). The individual pay-out for the C3 grade and above may vary, depending on business performance.” The email highlights the company’s decision to link higher-level payouts to the performance of their respective business units. TCS Q1 Results: Tata Consultancy Services Logs 6% Net Profit Growth at INR 12,760 Crore in Q1, Declares Interim Dividend of INR 11 per Share.

As per reports, TCS follows a structured employee grading system, starting from entry-level trainees at grade Y, moving up to systems engineers at C1, and progressing through C2, C3 (A and B), C4, C5, and CXO level. Employees in the C3 grade and above are generally considered part of the senior workforce. The company reportedly added 5,060 new employees in the quarter ended June, pushing its overall headcount to nearly 6,13,000 IT employees.

(The above story first appeared on LatestLY on Jul 15, 2025 11:39 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).