TCS Announces 100% Variable Pay For 70% Staff

For the fiscal quarter ending September 2023, Tata Consultancy Services (TCS), India's largest IT services company, will implement 100 per cent variable pay for the bulk of its employees.

TCS' chief human resources officer Milind Lakkad announced a 100 per cent variable for 70 per cent of its staff base in Q2FY24 at the company's post-earnings conference call. He notified the remaining staff that their pay would be variable based on the performance of their business unit.

"We are going to have hundred percent of the variable pay for 70% of our workforce and the remaining workforce will get paid based on the business unit performance," Lakkad stated in response to a question from the media.

TCS also revealed 100 per cent variable pay in their June quarter.

TCS reported a 2.4 per cent QoQ increase in consolidated net profit for the second quarter of FY24 to 11,342 crore on Wednesday.  The IT major's consolidated revenue from operations increased 0.5 per cent to 59,692 crore in Q2FY24, up from 59,381 crore the previous quarter.