Tata Consultancy Services (TCS), India’s largest IT services firm, is facing growing employee dissatisfaction following changes to its Quarterly Performance Bonus (QPB) policy.
The revised framework links bonus eligibility to physical office attendance, prompting concerns about fairness, transparency, and alignment with evolving work models.
The policy update, implemented via the company’s internal HR portal, stipulates that employees must maintain at least 85% in-office attendance to receive their full QPB.
Those with attendance between 75–85% are eligible for 75% of the bonus, while those between 60–75% receive 50%.
Employees falling below 60% attendance are not eligible for the bonus.
TCS Employee Reactions and Union Response
The All India IT and ITES Employees’ Union (AIITEU) has publicly criticized the policy, describing it as a form of “strategic exploitation”.
According to the union, the QPB—though part of the official Cost to Company (CTC)—has been inconsistently disbursed over the past two years.
Employees in mid-level roles, such as Assistant Consultants and Associate Consultants, reportedly received only 40–75% of their entitled bonuses.
Union representatives argue that the bonus is no longer tied to individual performance but instead to company-wide metrics and attendance, which they believe undermines employee morale and financial planning.
One employee cited a quarterly payout of ₹5,000–₹8,000 instead of the expected ₹40,000, resulting in an annual shortfall of nearly ₹1 lakh.
Broader Compensation Concerns
The QPB issue is part of a wider conversation around compensation practices at TCS. Employees have raised concerns about:
- Stagnant night shift allowances, unchanged at ₹360 per night for over a decade
- Modest salary increments, often in the range of 3–4%, which many feel do not keep pace with inflation
- Discrepancies between projected CTC and actual take-home pay, affecting loan approvals and financial stability
Offshore staff have reported facing challenges with dual-component salaries, comprising both Indian and local pay structures.
These issues have resulted in unpredictable deductions and reduced earnings, even during profitable quarters.
TCS Attendance and Bench-Time Policies
On June 12, 2025, TCS introduced a new policy. It requires employees to have worked at least 225 days in a year to avoid facing penalties.
Extended “bench time” or unallocated periods beyond 35 business days per year may result in disciplinary action.
The company’s leadership has emphasized that these measures aim to reinforce workplace culture and team collaboration.
TCS CHRO Milind Lakkad stated that the bonus linkage is not intended to punish employees but to encourage shared learning and camaraderie in office settings.
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