TCS: Tata Consultancy Services (TCS) has announced to give variable pay to more than 70 percent of its employees in the first quarter (April-June) of FY 2026.
Tata Consultancy Services: Tata Consultancy Services (TCS) of Tata Group, the country’s largest IT services company, has announced to give variable pay to more than 70 percent of its employees in the first quarter (April-June) of FY 2026. The remaining employees will be given their variable pay on the basis of their performance in their business unit.
According to ET report, in an email sent to his employees last week, Chief Human Resources Officer Milind Lakkad has written, all employees of C2 grade (or equivalent grade) coming under the QVA plan will get 100 percent quarterly variable allowance. Payout for employees of C3 grade and above will depend on their business performance.
TCS has grades for employees
Let us tell you that TCS has grades for employees – trainee employees come under Y level. System engineers come at C1 level. Then one by one comes C2, C3 (A & B), C4, C5 level and at the top is CXO. Employees coming under C3 or above band are considered senior staff. 70 percent of the employees coming in this C2 category will get their full variable for three months.
Decision on increment postponed
Recently TCS has postponed the decision of increment for its employees for the next quarter. The company starts the process of increment for its employees from April 1 in every financial year. The company says that due to the current economic challenges, the weakening dollar for three consecutive months has affected the company’s revenue. However, during this period there was a lot of hiring of new people. In the first quarter, 5,090 employees were hired, taking the total number of employees in the company to over 6,13,000.
Profit of Rs 12760 crore in the first quarter
In the first quarter of FY26, the company earned a profit of Rs 12,760 crore, up 6 per cent year-on-year. The company’s operational revenue also grew 1.32 per cent to Rs 63,437 crore as against Rs 62,613 crore in the same quarter last year. After its excellent quarterly results, the company has announced a dividend of Rs 11 per share for its shareholders.
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