Good news for TCS employees as Ratan Tata's firm announces 100 percent variable pay for THESE employees, check here

Tata Consultancy Services (TCS) has announced that 70 percent of its employees will receive 100 percent variable pay for the quarter ending June. As per a report by the Economic Times, payments to the rest of the employees will be made based on the performance of their respective business units.  

According to the report, the IT giant sent an email to the employees, informing them of the variable payout. All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100% of the Quarterly Variable Allowance (QVA). The individual pay-out for the C3 grade and above may vary, depending on business performance”, TCS chief human resources officer Milind Lakkad stated in the email, which the publication claims to have accessed a copy of. 

TCS grading structure 

According to a report by Times of India, TCS has an employee grading structure that starts with entry-level employees marked as Y trainees. The same is followed by system engineers at C1, C2, and C3–A&B, C4, C5, and CXOs. As announced by the firm, employees up to C2 grade will receive 10 percent of the variable pay, while employees in the C3 and above band will receive variable payments based on the performance of their business units. 

A TCS spokesperson confirmed the payout to ET, calling it “in line with our standard practice across quarters”. Meanwhile, the company is yet to decide on annual wage hikes amid a weak macro environment, stated the report.