According to Tata Consultancy Services (TCS), the payment of variable pay to the workforce for the March–June quarter of the 2022–23 fiscal year has not been delayed.
On Tuesday, the company made it clear that for the first quarter, all of its employees’ compensation will be variable.
“We’ve come across a lot of entirely false reports about our pay. As per standard procedure, variable pay is paid in either month one or month two; there is no delay in this process. For Q1, all compensation is variable “According to reports, TCS made a statement.
The clarification follows a few stories that said TCS has put off by a month the implementation of variable compensation for many senior workers for the first quarter.
For personnel in the C3A, C3B, C4 and corresponding categories, the payout was reportedly delayed. According to an internal correspondence from the company, the money owed in July would be paid by August 31, according to Economic Times.
TCS has already claimed that its bonus and pay cycles were proceeding according to schedule. According to the largest software exporter in India, over 90% of TCS employees have received the variable compensation thus far.
The variable compensation of their employees has also been postponed or lowered at other IT heavyweights like Infosys and Wipro.
According to certain recent estimates, Infosys, the second-largest IT services provider in India, reduced the average variable compensation for its employees to over 70% for the June quarter. In the midst of a margin crunch and excessive staff expenditures, variable pay was reduced.
The big IT company informed its employees that the variable payout for the first quarter of FY23 had been cut. It announced a 3.2% increase in net profit for the June quarter, which was less than anticipated.
However, Infosys increased its forecast for full-year revenue growth to 14–16 percent, citing a healthy deal pipeline and solid demand.
The variable pay for managers to the C-suite executives was also delayed by Wipro. Only 70% of the total variable pay will reportedly go to staff in the grades of team leaders and freshmen.
According to reports, Wipro made this decision as a result of margin pressure, inefficiency in the talent supply chain, and new technological investments.