TCS Will Pay Incentives, Bonuses To All 600,000 Employees; No Delay In 100% Variable Pay For All!

IT major TCS has now announced that 100% variable pay will be paid for its workforce of more than 600,000 people.

This has been revealed just a few days after the news that the June variable compensation payout had been delayed by a month for some employees of TCS. 

TCS Announces 100% Variable Pay For 600,000 Employees

We recently reported that 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. But it has been clarified that TCS will pay variable pay variable pay to all employees now.

TCS said, “Variable pay is either paid in month one or month two as per the normal process and there is no delay in this process. 100% VA is being paid for Q1,”

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

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 Held Back Variable Pay Too?

Wipro did something similar, holding back the 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. A recent media report mentioned that the IT major, Wipro was pausing variable payouts for April-June quarter for mid and senior-level employees.

Clarifying this subject, Wipro said that it has not changed its earlier stance on salary increase, and pay hikes for its employees will be effective from September 1.

Besides this, the Indian IT major has also said it has completed the first cycle of quarterly progressions effective July 1.

The report noted that the employees in Band C (mid-manager level) and above will not be given variable compensation. 

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