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TCS Variable Pay 2025: Tata Consultancy Services (TCS), India’s largest IT services company, has announced 100% variable pay for more than 70% of its employees for the April–June quarter, the Economic Times reported. For the remaining staff, payouts will be determined 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 payout for the C3 grade and above may vary, depending on business performance,” chief human resources officer Milind Lakkad stated in an internal email, as reviewed by ET.
TCS follows a structured grade hierarchy beginning with trainees at the Y level, moving up to systems engineer at C1, and then ascending through C2, C3 (A & B), C4, C5, and finally senior management levels. Those in the C3 and above bands are typically considered senior employees.
Despite timely quarterly variable payments, the company is yet to announce its annual wage hikes amid ongoing macroeconomic challenges that have weighed on its revenue in dollar terms for three consecutive quarters.
TCS added 5,060 employees in Q1 FY26, bringing its total workforce to nearly 613,000..
Commenting on the quarterly performance, CEO K Krithivasan noted, “There have been delays in decision-making and project starts. Discretionary spending has remained weak across sectors and worsened this quarter due to ongoing geopolitical conflicts, economic uncertainty, and supply chain disruptions.”
Krithivasan, however, remained cautiously optimistic, stating that discretionary tech investments — key drivers for software services firms — are expected to recover once macro clarity emerges.
