Particle.news

Download on the App Store

TCS Restores Full Q1 Variable Pay for Majority of Staff as Net Hiring Resumes

Delayed annual salary hikes reflect persistent global economic and geopolitical uncertainty, with TCS saying wage reviews will await a clearer outlook on discretionary tech spending.

Overview

  • TCS awarded 100% Quarterly Variable Allowance to over 70% of its workforce for Q1FY26, guaranteeing full payouts for employees up to C2 grade.
  • Payouts for C3 grade and above are tied to individual business unit performance under the attendance-linked QVA framework.
  • After three consecutive quarters of headcount decline, the company added more than 5,000 employees in Q1FY26, bringing its total workforce to 613,069.
  • CEO K Krithivasan cited ongoing geopolitical conflicts, economic uncertainty and supply chain disruptions for project delays and continued weakness in discretionary client spending.
  • TCS has committed to honoring all outstanding job offers through the end of the year and plans to recalibrate lateral hiring based on demand forecasts.