TCS Reduces Variable Pay of Senior Level Employees for Q2 Amid Weak Demand

Last Updated:November 08, 2024, 18:27 IST

While some workers obtained solely 20-40 per cent of their anticipated variable pay, others noticed no payout in any respect, in response to a report.

Tata Consultancy Services (TCS), India’s largest IT providers firm, has reduce variable pay for a lot of of its senior workers for the July-September 2024 interval (Q2 FY25) because the enterprise continues to see an unsure demand atmosphere, in response to a Moneycontrol report citing individuals aware of the event.

While some workers obtained solely 20-40 per cent of their anticipated variable pay, others noticed no payout in any respect, contrasting with a 70 per cent payout within the earlier quarter, in response to the report.

The variable pay at TCS relies upon upon each work-from-office attendance and the efficiency of particular person enterprise models. The newest growth highlights the continued challenges in demand and the macroeconomic uncertainties which have impacted the decrease single-digit development seen by Tier-I IT corporations in Q2.

In Q2FY25, TCS posted a year-on-year income development of 5.5 per cent in fixed foreign money (CC), amounting to Rs 64,259 crore, with a web revenue of Rs 11,909 crore.

Responding to Moneycontrol’s detailed queries, a TCS spokesperson clarified, “For Q2FY25 we’ve paid out 100% QVA (Quarterly Variable Allowance) to junior grades throughout the corporate. For all different grades, the QVA relies on their unit’s enterprise efficiency. This is in step with our customary observe throughout quarters.”

In April this year, the company had announced annual salary hikes for its workforce, with top performers receiving double-digit increments. Its Chief HR Officer Milind Lakkad had said salary hikes will be in the range of 4.5-7 per cent based on performance, with high-performers receiving double-digit increases.