TCS’ statement comes amid reports about the company slashing pay of its senior employees.
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Tata Consultancy Services (TCS) has stated that it has paid 100 per cent quarterly variable allowance to more than 70 per cent of employees of the company in response to reports that it had allegedly slashed pay of its senior employees.
Earlier, reports said that TCS slashed variable pay for its senior employees for the third quarter in a row. However, responding to the news, TCS called the claims “incorrect” and said that while 70 per cent employees did get quarterly allowance, the pay of the rest depends on the business performance of their respective units as per company standards.
“We have paid out 100 per cent QVA (quarterly variable allowance) to over 70 per cent of the company. For all other grades, the QVA depends on their unit’s business performance. This is in line with our standard practice across quarters,” TCS said in a statement.
In its latest quarter, TCS said it was deferring salary hikes for employees starting April, citing growing macroeconomic uncertainty. “We will decide during the year when to make the wage hike,” said Milind Lakkad, Chief HR Officer.
According to Sanchit Vir Gogia, Chief Analyst & CEO at Greyhound Research, not just TCS but India’s large IT firms are facing diminishing returns on headcount-driven growth as buyers demand automation-led cost savings and shorter delivery cycles.
In Q4, TCS hired 625 persons, indicating “a manifestation of deliberate, cautious reallocation of effort toward fewer but higher-skilled roles,” said Gogia. Further, wage hikes are no longer tied to tenure or pyramid structures but strategic alignment and value-added capability, he said.
Published on May 6, 2025
