TCS Joins Wipro In Delaying Incentive Payments To Junior Employees: What’s The Reason? Which Employees Impacted?

Tata Consultancy Services (TCS) is delaying variable compensation payments to select employees by about a month for the June 2022 quarter.

TCS Joins Wipro In Delaying Incentive Payments To Junior Employees: What's The Reason? Which Employees Impacted?

This is yet to finalize or these select employees and is expected to pay by this month-end.


What it means

Variable pay refers to performance compensation that is paid to employees on their contribution to a company.

It’s paid to encourage employees to meet objectives.

Affected employees

TCS has delayed the variable payout for C3A, C3B, C4, and equivalent grades by a month.

It was due in July and will be paid by August-end now.

Employees in C3A, C3B, C4, and equivalent grades are assistant consultant, associate consultant, and consultant levels among others.

Crossing headcount mark

TCS pays remuneration by way of salary, benefits, perquisites and allowances (fixed component), and commission (variable component).

It hit a milestone with employees’ headcount crossing the 6 lakh mark.

As of June 31, 2022, TCS headcount stood at 606,331 – a net addition of 14,136 during the quarter.

Attrition was 19.7% on the last twelve months basis.


Wipro did something similar, holding back variable pay of some employees while trimming the percentage of the compensation for freshers.

Managers to the C-suite Level of the company will not get any portion of variable pay.

On the other hand employee grades between freshers to team leaders will get 70% of the total variable pay.


Due to inefficiency in talent supply, pressure on margins, and inefficiency in investment in technology Wipro has not released variable pay.

1 Comment
  1. […] the case of TCS, it had delayed variable pay by a month for specific grades—C3A, C3B, C4, and equivalent—of […]

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