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TCS Reduces Variable Pay for Senior Staff, Despite Office Attendance Compliance!

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TCS Reduces Variable Pay for Senior Staff, Despite Office Attendance Compliance!

Tata Consultancy Services (TCS) has implemented a reduction in variable pay for certain senior employees, even as they adhered to the company’s work-from-office policy. This decision has led to cuts ranging from 20% to 40% for some senior staff members, with a few not receiving any bonus at all. In contrast, junior employees received their full quarterly variable allowance (QVA) for the latest quarter.

Overview of Variable Pay Adjustments

In a recent statement, a TCS spokesperson clarified that while junior employees across the company received 100% of their QVA for the second quarter of FY25, the variable pay for senior grades is contingent upon their unit’s business performance. “This is in line with our standard practice across quarters,” the spokesperson noted. The adjustments follow a 70% payout in the previous quarter, indicating a significant shift in compensation strategy.

TCS’s variable pay structure is intricately linked to both office attendance and the performance of individual business units. The company has been actively encouraging employees to return to the office, warning that non-compliance with attendance policies could lead to disciplinary action. As of July 2024, TCS reported that approximately 70% of its workforce was back in the office, with attendance numbers steadily increasing.

Updated Variable Pay Policy

In April 2024, TCS introduced a revised variable pay policy that directly ties bonuses to office attendance. The policy outlines four attendance slabs determining the variable pay:

  • Less than 60% attendance: No variable pay for the quarter
  • 60-75% attendance: 50% of the variable pay
  • 75-85% attendance: 75% of the variable pay
  • Above 85% attendance: Full variable pay for the quarter

This policy was part of TCS’s broader strategy to ensure employees return to physical offices five days a week, emphasizing the importance of in-person collaboration and organizational culture.

Q2 Performance and Future Outlook

For the second quarter, TCS reported a year-on-year revenue growth rate of 5.5% in constant currency terms, reflecting broader trends within the IT sector. The company anticipates improvement in performance by Q4, with management expressing optimism that headwinds affecting growth will stabilize by Q3. “We expect the headwinds to stabilize in Q3 and return to growth in Q4,” TCS management shared during their recent earnings call.

Industry Context

TCS’s decision to link variable payouts to office attendance sets it apart from other major Indian IT firms such as Infosys and Wipro, which have not adopted similar policies. Wipro recently distributed an average variable payout of 85% for its employees, highlighting a different approach to employee compensation amid changing work dynamics.

The implementation of this updated variable pay policy underscores TCS’s commitment to fostering a collaborative work environment while navigating challenges posed by economic uncertainties and evolving industry demands.

Conclusion

As TCS continues to adapt its compensation strategies in response to market conditions and employee attendance patterns, the recent reduction in variable pay for senior staff raises important questions about employee morale and retention. With ongoing changes in workplace dynamics and expectations around hybrid work models, how TCS manages these transitions will be critical for maintaining its competitive edge in the IT services sector.

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  1. gratis binance-konto

    May 7, 2025 at 12:09 pm

    Thanks for sharing. I read many of your blog posts, cool, your blog is very good.

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Kerala Startup E-Quark Launches Innovative Mobile Holder with Built-In Charger

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Equark - StartupStories

Kerala-based startup E-Quark Molecule Innovations Pvt Ltd, headquartered in Thrissur, has introduced an innovative device called Keratin that combines a mobile phone holder with a built-in charger. This unique gadget is designed to offer users a convenient solution to hold and charge their smartphones simultaneously, addressing the common challenge of managing power supply while using mobile devices.

The device enhances user experience by integrating two essential functions into one compact design. It securely holds the phone while providing efficient charging, making it perfect for use on desks, bedside tables, or other personal spaces where easy access and power are needed. This innovation aligns with the growing trend of multifunctional mobile accessories that prioritize both convenience and practicality.

E-Quark Molecule Innovations is a key player in Kerala’s dynamic startup ecosystem, which has been rapidly expanding in tech-driven areas such as electric vehicle charging infrastructure. With the launch of this mobile holder-charger, the company is establishing itself as a leader in user-centric mobile accessories, further cementing Kerala’s position as a hub for cutting-edge technology development.

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Instagram is rolling out two major features in June 2025 that promise to give users unprecedented creative control and privacy: grid rearranging and silent posting. The long-awaited grid rearranging tool allows users to freely drag and drop posts anywhere on their profile grid, breaking away from the traditional chronological order. This means users can now curate their profiles for a more visually appealing or thematic presentation, without the hassle of deleting and reposting content—an update especially welcomed by brands, creators, and anyone meticulous about their digital aesthetic.


In tandem, Instagram is introducing the “Post quietly to profile” feature, which lets users add photos and videos to their grid without notifying followers or pushing the content to their feeds. This silent posting option is ideal for those who want to document moments privately, experiment with new content, or maintain a cohesive grid without spamming their audience. It’s designed to reduce the pressure of public sharing, making Instagram a more comfortable space for personal expression and experimentation.

 

These updates reflect Instagram’s commitment to user empowerment and flexibility, responding directly to years of feedback. As Instagram head Adam Mosseri stated, the goal is to help users “create and share without added pressure,” giving them more freedom over how their content appears and how they engage with their audience.

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Zepto Delays IPO to Focus on Profitability and Indian Ownership

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Overview

Zepto, a leading quick commerce startup, has postponed its planned IPO to early 2026, shifting its focus to achieving profitability and increasing Indian shareholding before going public.

Key Reasons for Delay

  • Profitability Focus: Zepto aims to reach EBITDA break-even before listing, unlike many tech firms that went public while still loss-making.
  • Market Uncertainty: Ongoing global and domestic market volatility influenced the decision to wait for more stable conditions.
  • Peer Comparison: The company wants to present a stronger profit profile, learning from the performance of rivals like Swiggy and Zomato (now Eternal).

Boosting Domestic Shareholding

  • Target: Zepto plans to raise Indian ownership to at least 51% to comply with FDI norms and reinforce its Indian identity.
  • Actions: The company is conducting secondary share sales to Indian investors and founders are increasing their stakes by buying from foreign investors.
  • Progress: Domestic ownership has reached about 40-44%, with expectations to surpass 51% before the IPO.

Financial and Operational Updates

  • Efficiency Drive: Zepto is optimizing operations, running over 900 dark stores and offering 48,000 SKUs, to reduce cash burn and move toward profitability.
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Outlook

Zepto remains positive about its future, aiming to raise around $800 million in its IPO and attract both domestic and international investors. CEO Aadit Palicha emphasizes building a sustainable, majority Indian-owned business before entering the public market.

Summary: Zepto’s IPO delay reflects a strategic focus on financial stability and regulatory compliance, with profitability and Indian ownership at the forefront.

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