9 Nov 2025, Sun

TCS gives ‘good news’ amid continuous layoffs, announces 100% variable pay


Tata Consultancy Services: After the news of continuous layoffs, TCS has finally given a good news to its workers. Actually, the country’s largest IT services company Tata Consultancy Services (TCS) has announced Quarterly Variable Allowance (QVA) for its employees. Along with this, it has also been said to give 100% variable pay to junior level employees.

At the same time, it has also been promised to give more variable pay to mid and senior level employees than last year. However, this will be decided on the basis of performance. Let us tell you that variable pay is the remuneration given to an employee in addition to his salary on the basis of his performance.

Who will get how much on variable pay?

According to an Economic Times report, TCS Chief Human Resources Officer Sudeep Kunnumal told his staff via email, I am happy to share with you that the annual salary hike for employees in C3A grade and below has been implemented from September 25, out of which well performing staff will get double digit salary growth.

The email further said, “Junior workers in C, C1 and C2 grades generally get both an annual hike and 100 per cent variable pay.” An employee, speaking on condition of anonymity, said that employees at C3A and above levels are treated differently in terms of salary hike and variable pay.

Company results in the second quarter

The email further said, “We have announced our results for the second quarter of FY26. In this our growth is remaining the same. Thank you for your contribution. All employees up to C2 grade (or equivalent) covered under the Quarterly Variable Allowance (QVA) plan will receive 100% of the QVA. For employees in C3A grade and above level, variable pay may vary depending on their business performance. I am happy to say that the total QVA payout for this segment will be higher than last year.

Let us tell you that in the September quarter of the financial year 2025-26, the net profit of TCS has declined by 3.8 percent to Rs 12,075 crore, which was Rs 12,760 crore in the previous quarter. However, there was an increase in revenue, which increased by 3.7 percent to Rs 65,799 crore.

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