Tata Consultancy Services (TCS), the country’s largest Information Technology (IT) services provider, has disbursed 100 per cent of the Quarterly Variable Allowance (QVA) to 70 per cent of its employees, while the rest received reduced payouts, depending on the performance of their respective business units, reported The Economic Times.
“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," the company said in an official statement.
Employees in high-performing verticals such as Banking, Financial Services, and Insurance (BFSI) reportedly received full payouts.
“Many employees from business units with good performance such as BFSI... 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,” a TCS employee told The Economic Times.
Salary hikes on hold
Earlier in April, TCS leadership considered delaying annual salary hikes due to a challenging macroeconomic environment
“We will decide within the year when to make that happen,” said Milind Lakkad, Chief Human Resources Officer, during the company’s quarterly earnings call.
The QVA adjustments also reflect the company’s overall performance. TCS posted a 1.68 per cent year-on-year drop in net profit for the March quarter, coming in at Rs 12,224 crore. Revenue grew modestly at 5.3 per cent YoY to Rs 64,479 crore.
Attendance-tied incentives
In line with previous policies, variable payouts were also linked to Return-To-Office (RTO) compliance. TCS has mandated at least 85 per cent physical attendance to be eligible for full QVA. Non-compliance, the company warned, could attract disciplinary action.
In the past, some employees faced cuts in variable pay for not adhering to the five-day office attendance rule.
