Latest news with #KKrithivasan
Time of India
10 hours ago
- Business
- Time of India
TCS gives 100% variable pay to 70% employees; HR head says: Payment to the rest of the employees will be based on ...
Tata Consultancy Services (TCS) has announced 100% variable pay for around 70% of its employees for the quarter ending June. According to an Economic Times report, payment to the rest of employees will be based on the performance of their respective business units. The IT firm sent an email to its employees last week, informing them about the variable payout, which the publications claims to have seen a copy of. 'All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100% of the Quarterly Variable Allowance (QVA). The individual pay-out for the C3 grade and above may vary, depending on business performance', TCS chief human resources officer Milind Lakkad wrote in the email. Grade structure at TCS TCS has an employee grading structure which starts with entry level marked as Y trainees. It is followed by systems engineers at C1, followed by C2, C3 – A&B, C4, C5 and CXOs. As announced by the company, all employees up to C2 grade will receive 100% of their variable allowance. Employees in the C3 and above band – likely the senior category – will receive variable payment basis performance of their business units. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Harrogate: If You Were Born Between 1940-1975 You Could Be Eligible For This Life Cover Reassured Get Quote Undo A TCS spokesperson confirmed the payout to ET, stating it is 'in line with our standard practice across quarters'. Decision on annual wage hikes still pending The ET report states that despite the rollout of variable compensation for each quarter, the company is yet to make a decision on annual wage hikes amid a weak macro environment. Referring to Q1 performance, chief executive K Krithivasan said last week 'We have spoken about delays in decision-making and project starts. With respect to discretionary investments, this trend has continued and intensified to some extent in this quarter and global businesses were disrupted due to conflicts, economic uncertainty and supply chain issues'. Matrimonial Scams: Don't Lose Your Wallet While Searching for Love! AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
TCS gives out variable pay! Over 70% employees to get 100% variable; no decision yet on salary hikes
At TCS, the hierarchical structure begins with Y grade for trainees, progressing to C1 for systems engineers. TCS variable pay: In good news for a majority of its employees, Tata Consultancy Services (TCS), India's largest IT services firm, will give 100% variable pay out to around 70% of its staff for the April to June quarter. The compensation for remaining staff members will be decided by their business units' performance metrics. Although quarterly variable payments have been consistently distributed, the organisation is yet to finalise its annual salary hike policy. This delay comes amidst challenging economic conditions, resulting in the company experiencing revenue decline in dollar terms for three consecutive quarters. TCS Variable Pay TCS has verified the disbursement of variable compensation. A company representative told ET that the eligibility requirements remain "in line with our standard practice across quarters". In an email communication to staff last week, chief human resources officer Milind Lakkad reportedly said, "All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100% of the Quarterly Variable Allowance (QVA). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Providers are furious: Internet access without a subscription! Techno Mag Learn More Undo The individual pay-out for the C3 grade and above may vary, depending on business performance." At TCS, the hierarchical structure begins with Y grade for trainees, progressing to C1 for systems engineers, followed by C2, C3 – A&B, C4, C5, and culminates with CXOs. Staff members holding C3 positions and above are generally considered senior personnel. The leading IT services provider increased its workforce by 5,060 people during the quarter ending June, bringing its total employee strength to approximately 613,000. The TCS chief executive K Krithivasan spoke of ongoing challenges in Q1 in last week's earnings announcement, highlighting the persistent and heightened delays in decision-making and project initiations. He noted that global business operations faced disruptions stemming from conflicts, economic instability and supply chain complications. For software service providers, the ability to drive growth significantly depends on discretionary technology investments from their clients. Krithivasan expressed that whilst discretionary expenditure remains low across various sectors, he anticipates a recovery once the broader economic landscape becomes more definitive. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
TCS maintains 100% variable pay for 70% of staff in Q1 despite slowdown
Tata Consultancy Services (TCS), India's largest IT services company, has announced a 100 per cent payout of the Quarterly Variable Allowance (QVA) to over 70 per cent of its employees for the April–June quarter (Q1 FY26), according to an internal mail viewed by The Economic Times. This marks the second consecutive quarter of full QVA disbursement to the majority of its workforce, even as the industry continues to battle global macroeconomic headwinds and tight client budgets. The company stated that the payout for employees in higher grades, typically managerial and leadership roles, would remain variable and aligned with the performance of their respective business units, a policy it has followed consistently across quarters. 'We have paid out 100 per cent QVA to over 70 per cent of the company. For all other grades, the QVA depends on their unit's business performance. This is in line with our standard practice across quarters,' TCS had said in a statement issued previously in May, when it also made a full QVA payout for the January-March quarter. The company's internal grading structure begins with Y-level trainees, followed by system engineers (C1), and ascends through C2, C3, C4, C5, and executive leadership levels. Staff in the C3 and above bands generally comprise senior managers and business unit heads. Growth slows, but headcount grows Despite its commitment to employee payouts, TCS reported a mixed financial performance in Q1 FY26. Net profit rose 6 per cent year-on-year to ₹12,760 crore, up from ₹12,040 crore in the same period a year ago. However, revenue grew just 1.3 per cent year-on-year to ₹63,437 crore. In constant currency terms, revenue declined 3.1 per cent, and sequentially, revenue was down 1.6 per cent — the slowest growth since the Covid-hit Q1 FY21. The company cited global macroeconomic uncertainty, geopolitical tensions, and sluggish discretionary tech spending as ongoing drags on demand. CEO K Krithivasan noted that a recovery in discretionary investments remained elusive. 'This trend has continued and intensified to some extent in this quarter,' he said during the earnings call. Despite the subdued business environment, TCS added 5,060 employees during the April-June quarter, building on the 625 net additions made in the January-March period. The company's workforce now stands at nearly 613,000 — the highest among Indian IT firms. Attrition for the quarter stood at 13.8 per cent. No word yet on annual increments While the firm has honoured its quarterly variable pay commitment for two straight quarters, it has yet to announce annual salary hikes. Speaking after the Q1 results, Chief Financial Officer Samir Seksaria said delivering annual wage hikes remains a top priority for the company, despite the deferment. 'My priority is getting back to the wage hike,' Seksaria told PTI, though no timeline was specified. TCS typically rolls out annual increments starting in April. Seksaria noted that wage hikes, while critical, usually dent operating margins by over 150 basis points. He also pointed to a decline in utilisation levels due to upfront hiring, even as demand has remained weak. 'As demand recovers, we expect utilisation to improve. If demand recovery is prolonged, we will double down on optimisation,' he said, adding that internal efficiencies will be key to margin management going forward.
Economic Times
2 days ago
- Business
- Economic Times
TCS rolls out 100% Q1 variable pay for 70%+ employees
India's largest IT firm, Tata Consultancy Services , has announced 100% quarterly variable pay for more than 70% of its employees for the April-June period. Payment to the rest of the employees will be based on the performance of their respective business units.'All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100% of the Quarterly Variable Allowance (QVA). The individual pay-out for the C3 grade and above may vary, depending on business performance,' chief human resources officer Milind Lakkad said in an email to employees last week. ET has seen the grade structure at the Tata Group company typically starts with entry level at Y as trainees, systems engineer at C1, followed by C2, C3 – A&B, C4, C5 and CXOs. Employees in the C3 and above band are likely to fall in the senior confirmed payment of the variable allowance. The criteria for payment is 'in line with our standard practice across quarters', a spokesperson said in response to ET's the company has paid out variable components timely for each quarter, the management has still not made a decision on annual wage hikes amid a weak macro environment which has led to the company reporting a fall in revenue in dollars for three straight IT industry bellwether added 5,060 employees in the quarter ended June, taking its total headcount to nearly 613,000."We have spoken about delays in decision-making and project starts. With respect to discretionary investments, this trend has continued and intensified to some extent in this quarter and global businesses were disrupted due to conflicts, economic uncertainty and supply chain issues,' chief executive K Krithivasan said last week, referring to the Q1 technology investments or spending by clients are crucial for software service providers to push TCS chief pointed out that while discretionary spending remains subdued across sectors, it is expected to bounce back once there is clarity in the macro environment.
Time of India
2 days ago
- Business
- Time of India
TCS rolls out 100% Q1 variable pay for 70%+ employees
Academy Empower your mind, elevate your skills India's largest IT firm, Tata Consultancy Services , has announced 100% quarterly variable pay for more than 70% of its employees for the April-June period. Payment to the rest of the employees will be based on the performance of their respective business units.'All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100% of the Quarterly Variable Allowance (QVA). The individual pay-out for the C3 grade and above may vary, depending on business performance,' chief human resources officer Milind Lakkad said in an email to employees last week. ET has seen the grade structure at the Tata Group company typically starts with entry level at Y as trainees, systems engineer at C1, followed by C2, C3 – A&B, C4, C5 and CXOs. Employees in the C3 and above band are likely to fall in the senior confirmed payment of the variable allowance. The criteria for payment is 'in line with our standard practice across quarters', a spokesperson said in response to ET's the company has paid out variable components timely for each quarter, the management has still not made a decision on annual wage hikes amid a weak macro environment which has led to the company reporting a fall in revenue in dollars for three straight IT industry bellwether added 5,060 employees in the quarter ended June, taking its total headcount to nearly 613,000."We have spoken about delays in decision-making and project starts. With respect to discretionary investments, this trend has continued and intensified to some extent in this quarter and global businesses were disrupted due to conflicts, economic uncertainty and supply chain issues,' chief executive K Krithivasan said last week, referring to the Q1 technology investments or spending by clients are crucial for software service providers to push TCS chief pointed out that while discretionary spending remains subdued across sectors, it is expected to bounce back once there is clarity in the macro environment.
