India’s largest IT services firm, Tata Consultancy Services (TCS), has announced a full 100% payout of its quarterly variable allowance (QVA) to junior employees for the second quarter of FY 2025–26.
The move comes amid cautious optimism in the IT sector and is seen as a signal of TCS’s commitment to retaining talent and maintaining workforce morale during a period of economic uncertainty.
Full Variable Pay for TCS Junior Staff
According to internal communications shared with employees, TCS will disburse 100% of the QVA to employees in grades C, C1, and C2.
These grades typically include entry-level and junior professionals who form the backbone of project delivery and operations.
The announcement was made by Chief Human Resources Officer Sudeep Kunnumal following the company’s Q2 earnings report.
Sudeep stated, “I am pleased to share with you that the quarterly variable allowance will be paid at 100% for junior grades.”
He added, “For mid and senior grades, the payout will be higher than last year, subject to business performance.”
This marks a continuation of TCS’s practice of rewarding junior employees with full variable pay.
The company especially extends this benefit to those within lower salary brackets.
Variable Pay Structure and Grades
TCS’s variable pay structure is tiered across employee grades.
Junior employees in grades C, C1, and C2 are receiving full variable pay payouts.
In contrast, employees in grades C3A and above—typically mid-level managers and senior professionals—will receive payouts based on individual performance and business unit outcomes.
This performance-linked approach is consistent with TCS’s internal compensation framework and reflects the company’s focus on merit-based rewards.
The QVA is a quarterly component of employee compensation and is separate from annual salary hikes.
It is designed to reflect company performance as well as individual contributions. It also serves as a tool to boost employee engagement and retention.
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
