Tata Consultancy Services (TCS) will give 100% variable pay to all its junior level employees for the third quarter. This information has been given in an email from the company’s Chief Human Resources Officer Milind Lakkar. TCS has taken this step at a time when the business environment remains challenging and it received fewer deals during the third quarter
Tata Consultancy Services (TCS) will give 100% variable pay to all its junior level employees for the third quarter. This information has been given in an email from the company’s Chief Human Resources Officer Milind Lakkar. Moneycontrol has accessed a copy of the email. TCS has taken this step at a time when the business environment remains challenging and it received fewer deals during the third quarter
. Despite this, however, the company managed to beat market estimates on the revenue front in the third quarter. “It has been decided to pay 100% of Quarterly Variable Pay (QVA) to all employees up to C2 or equivalent grade covered under the scheme,” the email said. These include trainees and IT analysts.
While the individual variable pay of middle and senior level employees is based on the business performance of their unit. “The individual pay-out for C3A or equivalent grade and above (as applicable) may vary depending on the performance of the respective business unit,” Lakkad said in a note.
C3A and above grades include Assistant Consultant, Associate Consultant, Consultant, Senior and Principal Consultant. Let us tell you that TCS had paid 100% variable pay to its junior employees in the last quarter as well.
Reduction in the total number of employees of TCS
TCS’s total employee count declined in the December quarter. The company has reduced 2,197 employees in the December quarter as compared to the previous quarter. The decline in TCS’s workforce comes at a time when demand pressure is being seen in the IT sector. Earlier, the reduction in the number of employees of TCS was recorded in the first quarter of FY 2021, when India was in complete lockdown due to the first wave of Corona epidemic.
Releasing the results of the October-December quarter of the current financial year on Monday, January 9, TCS said that the company’s total employee strength is currently 6,13,974, compared to 6,16,171 at the end of its previous quarter.
TCS profit up 11%
TCS’s consolidated profit in the third quarter of FY23 increased by 10.98 percent to Rs 10,846 crore. The company’s consolidated income rose by 19.11 per cent to Rs 58,229 crore, higher than expected, as against Rs 48,885 crore in the same quarter last year. At 2.30 pm, at the time of writing the news, TCS stock is up 1.34% on the BSE and is around Rs 3,330.