TCS has cut variable pay in April 2024, which is now linked to office attendance. Pay-out decreases if attendance is less than 85%. There is concern among the employees due to this change and the reshuffle in the CTC structure.
Bengaluru: Tata Consultancy Services (TCS) is once again in the news regarding the changes in its salary structure. According to reports, many employees have received much less variable pay than expected in the salary of April 2024. Some employees have even alleged that they have received only 50% of their variable pay.
When the company distributed Quarterly Variable Allowance (QVA) for the January-March quarter of the 2023-24 financial year, many people got pay-outs ranging from 60 to 80 percent. This was better than the last two years, because then only 20 to 50 percent was available. However, according to reports, not all employees got its benefit.
TCS has become very strict regarding ‘work from office’ policy since last one year. Under the new policy, variable pay is now directly linked to your attendance in office. According to the rules, only those with more than 85% attendance will get full variable pay. Those whose attendance is between 75 to 85% will get around 75% and those with 60 to 75% will get only 50%. At the same time, no quarterly bonus will be given if the attendance is less than 60%.
Some employees complain that despite completing the required attendance, they did not get the full amount. He says that the performance of business units also impacts the pay-outs, due to which he has suffered a loss of lakhs of rupees in the last two years. Meanwhile, TCS also increased the annual salary, which further increased the confusion. The company gave an average increment of about 5%, but in the new CTC structure, the monthly salary of some employees became slightly less than before. It is being said that the main reason for this is the exclusion of gratuity from CTC under the new Labor Code of India.
Employees who had good performance ratings received raises ranging from 9 to 13 percent, while those with low ratings received very modest hikes. Due to all these changes, there is an atmosphere of anxiety and restlessness among the employees.