Tata Consultancy Services (TCS), one of India’s leading IT firms, is facing intense criticism over its controversial salary practices, particularly its Quarterly Performance Bonus (QPB) system. The All India IT and ITES Employees’ Union (AIITEU) has accused TCS of “strategic exploitation” by inconsistently paying bonuses that form a significant part of employees’ Cost to Company (CTC). Saubhik Bhattacharya, AIITEU’s General Secretary, condemned the company’s policy, highlighting that employees from various levels—especially mid-tier roles like Assistant Consultants—have received only 40–75% of their entitled bonuses over the past two years.
TCS Bonus Policy Sparks Frustration Over Pay Disparity and Attendance Mandates
The QPB is tied not to performance, but to company-wide metrics like quarterly revenue and in-office attendance. Employees must be present in the office at least 85% of the time to be eligible for full bonuses—an alarming shift, especially in the post-COVID era when many prefer remote work. This policy has frustrated employees, who argue that the bonus, while technically part of the CTC, is neither reliable nor fair. One employee reported receiving only Rs 5,000–8,000 quarterly instead of the expected Rs 40,000, resulting in an annual loss of nearly Rs 1 lakh.
Employees also expressed concerns about the inconsistency between their projected CTC and actual take-home salary, complicating financial planning, loan approvals, and EMIs. Night Shift Allowance, stagnant at Rs 360 per night for over a decade, adds to growing dissatisfaction. Many said that delayed or meagre salary increments, often as low as 3–4%, do not match inflation, especially hurting junior and mid-level staff.
TCS Offshore Staff Hit by Deductions and Bench-Time Penalties, Demand Salary Reforms
Offshore employees face additional challenges, including unpredictable deductions and a dual-component salary (Indian and local) that often leads to reduced earnings—even when the company is profitable. A new policy enforced on June 12, 2025, penalizes employees for extended “bench time” if they haven’t worked 225 days annually, further increasing job insecurity.
Employees and union leaders are now calling for urgent reforms and a transparent, fair salary structure that genuinely rewards effort, ensures financial stability, and restores morale among TCS’s massive workforce.
Summary:
TCS faces backlash over its inconsistent Quarterly Performance Bonus (QPB) system, attendance-linked pay, stagnant allowances, and unclear increments. Employees report financial instability, unfair deductions, and growing dissatisfaction. Offshore staff face dual-pay issues and penalties for bench time. Unions demand urgent reforms for a fair, transparent, and reliable salary structure.
