According to various media reports, India’s largest IT Services Provider, Tata Consultancy Services (TCS) has given a salary hike of 20% and variable pay for 70% of its employees as Christmas and New Year gifts.
The salary hike is based on the performance of the remaining staff. Additionally, TCS will provide 4 lakh employees the bonus in form of 100% variable pay for the fiscal year 2022.
Moreover, 4 lakh employees out of 6 lahks will get the bonus in form of 100% variable pay for the fiscal year 2022.
The company stated that the remaining 30% of employees will get variable pay on a performance basis.
However, the TCS told to SightsInplus, “the news is FAKE the company has not announced such salary hike” However the variable pay for 70% of its employees is true.
Variable pay is a form of incentive that employees can avail as a result of their high performance. There are various forms of variable pay offered by IT companies, some of them include: Stock equivalents, Annual Bonuses, and Commissions.
Variable payments are given to employees for various contributions such as the organization’s high performance and profit, employees’ high performance on the job, and individual contributions to the company.
Reportedly, TCS’s net profit rose by 8% in the previous quarter. CHRO Milind Lakkad told while the announcement of Q2FY23 results, “We are going to pay 100% variable pay to 70% of employees, the remaining 30% will get paid based on their business unit performance.” He also affirmed that there is no delay in the payment of the bonus cycle and compensation. The firm is going as planned.
Earlier, Infosys announced that its employees will be receiving 65 percent variable pay for the July – September quarter of FY23.
Amid high attrition, The company hired 35,000 freshers in the first half of FY23. It further expects to hire 10-12,000 more freshers in FY23. However, the hiring decision will be taken after Q3FY23.
In Q2FY23, the attrition rate of the company rose to 21.5 percent from 19.7 percent in Q1FY23. However, the company said that the attrition has peaked and will taper down in the coming quarters.