TCS To Withhold Variable Pay For Employees With Less Than 60% Office Attendance: Report
TCS now requires employees to maintain at least 85 per cent attendance in-office to receive the full quarterly variable pay
TCS Variable Pay: Tata Consultancy Services (TCS) has announced a new policy linking employees' quarterly variable pay to their office attendance. The update, which comes after the IT services giant mandated a five-day work week in-office, states that employees with less than 60 per cent attendance will be ineligible for the quarterly bonus, citing sources Moneycontrol reported.
The policy change was communicated to employees through an internal HR portal. According to the report, TCS now requires employees to maintain at least 85 per cent attendance in-office to receive the full quarterly variable pay. Employees with attendance rates between 75 per cent and 85 per cent will receive 75 per cent of their variable pay, while those with 60 per cent to 75 per cent attendance will receive only 50 per cent of their variable pay. Consistent non-compliance with the attendance policy could lead to disciplinary action.
TCS CEO and MD K Krithivasan highlighted the benefits of employees returning to the workplace in a recent communication summarising the company's performance for FY24.
He said that the fourth quarter, which ended on March 31, saw most employees return to the office, fostering "shared experiences, nurturing greater learning, collaboration, and camaraderie." Krithivasan expressed confidence that the momentum would lead to new opportunities.
The company had previously implemented a hybrid work model following the pandemic but ended it on October 1, 2023, by requiring employees to return to the office full-time.
In February, TCS informed employees that their variable pay would soon be linked to their office attendance.
Meanwhile, on April 12, the IT service firm clocked a net profit of Rs 12,434 crore for the fourth quarter (Q4) of the fiscal year 2023-24, marking a 9.15 per cent increase from the Rs 11,392 crore earned in the same quarter the previous year. The revenue for the March quarter reached Rs 61,237 crore, a 3.5 per cent rise from the Rs 59,162 crore recorded in the corresponding quarter last year.
Despite surpassing analysts' profit forecasts, TCS experienced single-digit growth in both profit and revenue, which closely aligned with expected projections.
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