TCS delays variable pay for some employees: Read what the mail said

IT giant Tata Consultancy Services (TCS) has delayed performance bonus or variable compensation payout by a month for some employees for the quarter ending June. TCS is India’s largest IT services company by revenue. The company has delayed the variable payout for employees at the assistant consultant, associate consultant and consultant level by a month. These employees come under C3A, C3B, C4 and equivalent grades. The variable pay that was due to be paid in July will be paid by August-end now, as per an internal email. The email was reportedly sent in July. Here are excerpts from the email as seen by Economic Times (ET).
“The performance bonus for Q1 FY23 is yet to be finalised for C3A, C3B, C4 and equivalent grades. This will be paid along with August 2022 payroll to eligible associates,” says the email. The email does not specify the reason for the delay or the quantum of the bonus which will be given out. The experience range of employees in the impacted bands reportedly ranges from 7 to 15 years. The annual variable component typically accounts for 10% of the pay package. Roughly 10-15% of the company’s employee base fall under this category.