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TCS Maintains Senior Staff Pay Cuts While Over 70% Receive Full Variable Allowance

For the third consecutive quarter, TCS has reduced senior employees' variable pay under its attendance-linked policy, while delaying annual salary hikes due to global uncertainties.

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Overview

  • TCS has implemented variable pay cuts for senior employees for the third straight quarter, citing its attendance-based policy.
  • Over 70% of TCS employees received 100% of their Quarterly Variable Allowance (QVA) for the January–March 2025 quarter.
  • The QVA for the remaining 30% of employees is tied to the performance of their respective business units, as per TCS's policy.
  • Annual salary increments, typically announced in the first quarter, have been delayed due to global economic and tariff-related uncertainties.
  • Despite these measures, TCS continues to invest in employee training and recorded a net headcount increase of 625 employees in Q4 FY25.