Tata Consultancy Services Delays Variable Pay For Employees; Earlier Wipro Did The Same
Mumbai, 20th August 2022: The payments for variable compensation to a small group of employees for the June 2022 quarter have probably been delayed by around a month by tech giant Tata Consultancy Services (TCS).
The variable compensation for employees has been postponed by many companies, including TCS. Wipro recently reduced the percentage of compensation for new hires while deferring some employees’ variable pay.
IT companies increased staff compensation, which affected their margins in the June 2022 quarter. However, they continue with their goal to hire more people and pay them more.
According to reports, the Tata Group-owned corporation has not yet decided on the variable payout for these chosen employees, but it is anticipated to pay before the end of this month.
Employees who perform well for the company receive variable pay, which is performance-based pay. These factors are compensated to motivate workers to achieve goals.
According to TCS’s compensation policy, which was included in its annual report for FY22, “To meet project needs, our business model encourages client centricity and necessitates staff mobility. The compensation policy encourages such mobility by using pay models that adhere to local laws. The compensation system is adapted to the laws, customs, and industry standards in each nation where the corporation conducts business.”
TCS pays compensation in the form of a salary, commission, perquisites, and allowances (fixed component) (variable component).
