India’s IT giant Tata Consultancy Services (TCS) on Tuesday clarified that it has not delayed giving variable pay for the June quarter to its employees and itis normal to pay it along with the salary of the first or second month. TCS said in a statement,”We have come across several false reports on the compensation paid to our employees. As per the normal procedure, variable pay is paid within a month or two and there is no delay in this.” 100% variable pay is being paid for the June quarter.”
In an email sent to certain grades of employees, the company said that the performance bonus for these grades has not yet been finalized. Moneycontrol has seen a copy of this email. “The performance bonus for the June quarter for employees of C3A, C3B, C4 and its equivalent grades is yet to be decided. It will be paid along with the salary of August 2022,”the email said. The email did not provide details as to why the performance bonus is yet to be finalized.
Earlier, when Moneycontrol approached TCS in the matter, the company had said,”All our compensation and bonus cycles are running as per schedule.” TCS’ rivals – Wipro and Infosys – have both cut their variable pay for the June quarter.
Infosys has reduced the variable pay to its employees in the first quarter of the current financial year due to reduction in margins. The company said that the average variable payout at the institution level will be 70 per cent in this quarter.
On the other hand, Wipro has put on hold the variable payments of its mid and senior level employees for the April-June quarter. Apart from this, junior level employees will be given only 70 per cent of their June quarter variables.