India’s largest IT services firm, Tata Consultancy Services (TCS) has delayed variable compensation payments to select employees by about a month for the June 2022 quarter.
Recently, Bengaluru-based, Wipro also held back the variable pay of some employees while trimming the percentage of the compensation for freshers.
However, TCS claims all its compensation and bonus cycles are as per the company’s plan.
One of the TCS employees, who is impacted by the company’s delay, said that the quarterly performance bonus is usually given in the payroll that follows the end of the quarter, but this time, TCS had communicated a delay.
This was an administrative issue that will impact a small percentage of employees, said the Economic Times quoting sources with the company, he added.
According to the reports, The company has delayed the performance bonus for some employees for the June quarter (Q1 FY23) by almost a month.
According to reports, referring to an internal email by the company, “the compensation which was supposed to be paid in July is now likely to be paid by August 2022 end.”
Employees, belonging to C bands and above (managers to C-suite level) wouldn’t receive any variable payouts.
While associates in A & B Bands (freshers to team leader levels) would get 70 per cent of the target variable pay for the Q1 FY23. And TCS has already given variable pay to freshers and other junior-level associates for the Q1 FY23.
India’s largest IT services company, TCS has added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce, company said in a statement.
Software giant kicking off the corporate earnings season — said its attrition rate further rose to 19.7 percent in the April to June quarter of the 2022-2023 financial year. In the previous quarter, TCS saw an attrition rate of 17.4 percent.
Milind Lakkad, Chief HR Officer, said, following the annual compensation review, TCS employees received salary increases of 5 to 8 percent with top performers getting even bigger hikes.
“Our empowering, performance-driven work culture is helping us attract local talent across all our key markets. Continued hiring momentum resulted in a milestone quarter, with the employee strength crossing the 600,000 mark,” he added.
