TCS Variable Pay Policy 2024: Krithivasan-led IT Major Has Major Update For Employees Working From Home
Photo : PTI
TCS Variable Pay Work From Office News: India’s top software services exporter Tata Consultancy Services (TCS) has rolled out a significant update to its variable pay policy, spotlighting office attendance as a pivotal factor. The revamped policy, unveiled shortly after the release of the company’s quarterly results, introduces four attendance slabs dictating variable pay for its workforce.
Key Points:
Variable Pay Based on Office Attendance: Under the new policy, employees working from the office for less than 60 per cent of their time will not receive any variable pay for the quarter.
Graduated Scale: Employees with an office attendance between 60 and 75 per cent will qualify for 50 per cent of the variable pay. Those attending the office 75-85 per cent of the time will be eligible for 75 per cent of the variable pay. Only individuals with office compliance levels exceeding 85 per cent will receive the full variable pay for the quarter.
Return-to-Office Mandate: TCS’s decision comes on the heels of a February report by The Times of India (TOI), which highlighted the company’s adherence to its return-to-work directive. Business unit leaders have communicated to their teams that grading, a prerequisite for promotions, will be contingent upon adherence to office attendance.
Consequences of Non-Compliance: The policy emphasizes that persistent failure to meet the 85 per cent office attendance requirement will result in disciplinary action. It specifies that employee compliance with the work-from-office mandate will be assessed quarterly, with implications on annual performance reviews, compensation, and career progression.
CEO’s Emphasis on Office Return
In messages to employees following the March quarter results, CEO K. Krithivasan and Chief Human Resources Officer (CHRO) Milind Lakkad underscored the importance of returning to the office. Krithivasan emphasized the benefits of shared experiences, enhanced learning, collaboration, and camaraderie fostered by physical workplace interactions, reported TOI.
Five-Day Office Week: TCS employees are expected to work from the office for all five working days of the week. The company has become the first among India’s major IT firms to take action against non-compliance, initiating reductions in city allowances for employees failing to attend the office daily.
TCS Quarterly Q4 Results 2024
TCS reported a 9 per cent growth in net profit at Rs 12,434 crore in January-March quarter of FY24, helped by improved margin and strong performance of its India business. The largest software services exporter had reported a post tax profit of Rs 11,392 crore in the same period of the preceding fiscal. In the entire FY24, the company’s net profit surged 9 per cent to Rs 45,908 crore, while the revenue rose to Rs 2,40,893 crore from Rs 2,25,458 crore registered in FY23.
