IT services firm Tata Consultancy Services (TCS) clarified on June 23 that it has not delayed variable pay to employees for Q1 and that it was normal to give it in the first or second month.
“We have come across completely incorrect reports on our compensation. Variable pay is either paid in month one or month 2 as per the normal process and there is no delay in this process. 100% VA is being paid for Q1,” the statement by TCS said.
An email sent to employees in specific grades, a copy of which Moneycontrol has seen, had said that the performance bonus was yet to be finalised for these grades of employees.
“The performance bonus for Q1 FY23 is yet to be finalized for C3A, C3B, C4, and equivalent grades. This will be paid along with August 2022 payroll to eligible associates,” the email sent by TCS to employees read. The email did not have details regarding why the performance bonus had not been finalised at the time.
When Moneycontrol had previously reached out to TCS for comment, the company had said: “All our compensation and bonus cycles are as per plan.”
TCS’ peers Wipro and Infosys have both slashed variable pay for the first quarter, as Moneycontrol earlier reported.
Wipro will not be giving variable pay to those in Band C and above (people at mid-manager level and above), while junior employees will receive 70 percent of their variable payout. While Wipro did not comment on the quantum of variable payout, the company said in a statement that as per its plan, salary hikes will be rolled out from September 1 and it has completed the first cycle of its quarterly promotional cycle from July.
Infosys, on the other hand, has said that the average variable payout at an organisation level will be 70 percent, but the final payout varies for employees in different pay grades and different units. Infosys is yet to comment on the matter.
These measures come as IT companies defend their margins, which have come under pressure due to rising employee costs even as they grapple with elevated attrition.
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