TCS Slashes Bonus Payments For Senior Employees, Even For Those Who Followed Work From Office Norms

Junior employees received their quarterly variable allowance in full, while some senior employees saw a 20-40 per cent reduction in their allowances

The firm has been lately asking employees to return to office, earlier saying that regular non-compliance with the attendance policies could result in disciplinary action

Source : Naukri

Tata Consultancy Services (TCS) slashed its bonus payments for some employees during the July-September quarter. The tech giant cut down the variable allowances for some of its staff, including those who adhered to the company’s work from office policies.

A report by Moneycontrol stated that junior employees received their quarterly variable allowance in full, while some senior employees saw a 20-40 per cent reduction in their allowances. Some of them received no bonus at all.

This followed a 70 per cent variable payout distributed in the previous quarter. A spokesperson for the tech giant said, “For Q2FY25 we have paid out 100% QVA (Quarterly Variable Allowance) to junior grades across 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.”

Notably, TCS decides on bonuses on the basis of office attendance and an individual’s performance. The firm has been lately asking employees to return to office, earlier saying that regular non-compliance with the attendance policies could result in disciplinary action.

In April 2024, the company announced a revision in the variable pay policy that integrates employees’ office attendance as a crucial factor. The revised policy states that individuals working from office for under 60 per cent of the time would not be entitled to receive any variable pay for the quarter.

The policy dictates that employees with an office attendance between 60-75 per cent would be entitled to recieve 50 per cent of the variable pay, while employees with an attendance of 75-85 per cent would receive 75 per cent of the variable component.

Only staff members with an attendance above 85 per cent would receive the complete variable pay for the quarter. In the second quarter, the company reported weaker revenue growth, following similar trends seen across the sector.