India’s largest IT major, As per the reports, Tata Consultancy Services (TCS) has decided to give 100 percent variable pay to almost all junior-level employees of its workforce for the quarter that ended in December, Q3FY23.
On the other end, the senior employees will get their variable pay based on business performance. Additionally, the amount of variable pay can exceed 100 percent or more.
“A decision has been taken to pay 100 per cent of the quarterly variable pay (QVA) to all employees up to C2 or equivalent grades covered under this plan”, read an email sent from the office of the Chief Human Resource Officer of the company, Milind Lakkad.
“The individual payout for C3A or equivalent grades and above may vary depending on the business unit performance”, it added.
He explained, “C2 grade has employees with a minimum 4 years experience, so relatively they are not very senior. Above that is a C3A grade. The positions start with Assistant Consultant. C3A is sort of entry into mid-level and above that is mid to senior level positions.”
Furthermore, the email detailed the variable pay of employees who fall in grades above the C2 level. Recently, The company said that it will be hiring 1.25 lakh to 1.5 lakh employees in the financial year 2023-24 (FY24).
Since the company posted a decline of 2,197 people in its employee base, TCS headcount stood at 613,974 as on December 31, 2022. The company also clarified that none of these headcount reductions are influenced by the demand environment, and were simply a result of mass hiring.
TCS has reported attrition in Q3FY23 stood at 21.3 percent, a slight decline from 21.5 percent in Q2FY23 on a last-twelve-month basis.
