According to a report by Moneycontrol, Tata Consultancy Services (TCS) has reduced the variable salary of its senior employees. The company has allegedly claimed that it has taken 100 percent of the variable part of the salary for 70 percent of its employees. For the remaining 30 percent, the variable reportedly depends on the performance of their teams. According to the company, the Economic Times said, “We have paid 100% QVA (quarterly variable allowance) for more than 70% of the company. For all other grades, QVA depends on the commercial performance of their unit. It is suit our standard practice.”

In April, during the quarterly income call, TCS Chief HR Officer, Milind Lakkad reportedly announced that the evaluation would be postponed. He claimed that the salary increase was postponed due to the ongoing tariff war and its impact on global economics. Lakkad said, “Due to the uncertain atmosphere, we will decide on wedge hike during the year. This can happen at any time on business basis.” However, he claimed that the salary will increase within this year. He said, “A decision on Veg hike will be taken within the year.”

Typically, the TCS rolls the salary hike in the first quarter of the financial year, in the second quarter, with the salary reflected in the salary of the employees along with the dues and the salaries of the employees are reflected in the salaries.

TCS is reducing the variable salary of its senior employees from the previous three quarters. In September 2024, for the July-September quarter, TCS reduced the variable salary of senior employees, as it introduced a new rule that was associated with the presence of the office. For the same reason, the variable was reduced again in the next quarter of October to December 2024. Some employees of the office allegedly received only 20 to 40 percent of their variable salary time.

The new attendance policy under consideration – due to which the variable salary of some employees was reduced to the previous two quarters – came into force in April 2024. According to the policy, TCS employees who go to the office for less than 60 percent will not get any variable salary. Employees who have an office presence between 60 and 75 percent will get 50 percent of their variable salary, and those who show 75 percent to 80 percent will get 75 percent variable salary. Only employees who have more than 85 percent attendance are eligible to receive 100 percent of variable pay components.