Companies

After Wipro, TCS delays variable pay for select employees: Report

    0
    Share on Facebook Share on Twitter


    Tech giant, Tata Consultancy Services (TCS) has likely delayed variable compensation payments to select employees by about a month for the June 2022 quarter. TCS is not alone who has delayed their employees’ variable payment. Recently, peer Wipro held back variable pay of some employees while trimming the percentage of the compensation for freshers. IT companies have hiked wages for their employees, which impacted their margins in June 2022 quarter. However, they continue their plan for hiring and raising salaries.

    It is said that the Tata Group-backed company is yet to finalise variable payout for these select employees and is expected to pay by this month-end.

    Variable pay is performance compensation that is paid to employees on their contribution to a company. These variables are paid to encourage employees to meet objectives.

    As per the Economic Times report, TCS has delayed the variable payout for C3A, C3B, C4, and equivalent grades by a month. The payment was due in July and will be paid by August-end now. An email accessed by them stated that the performance bonus for these employees is yet to be finalised. Also, the payment will be made along with the August 2022 payroll to eligible associates.

    The employees in C3A, C3B, C4, and equivalent grades are assistant consultant, associate consultant, and consultant levels among others.

    Under its remuneration policy released in the annual report FY22, TCS states, “our business model promotes customer centricity and requires employee mobility to address project needs. The remuneration policy supports such mobility through pay models that are compliant with local regulations. In each country, where the company operates, the remuneration structure is tailored to the regulations, practices, and benchmarks prevalent in the IT industry.”

    TCS pays remuneration by way of salary, benefits, perquisites and allowances (fixed component), and commission (variable component).

    In Q1FY23, TCS touched a milestone with employees headcount crossing the 6 lakh mark. As of June 31, 2022, TCS headcount stood at 606,331 – a net addition of 14,136 during the quarter. The company’s IT services attrition was 19.7% on the last twelve months basis.

    In the quarter, the company gradually accelerated its return to office program, with about 20% of the workforce working from the office.

    On Friday, TCS shares settled at 3385.25 apiece marginally up on BSE. The company is the second most valued company in the market with a valuation of 12,38,680.37 crore.

    TCS is the largest IT company in terms of market share and revenue.

    Earlier this week, as per a PTI report, Wipro held back variable pay of employees. In Wipro, managers to the C-suite Level of the company will not get any portion of variable pay. Whereas, employee grades between freshers to team leaders will get 70% of the total variable pay.

    As per the report, inefficiency in talent supply, pressure on margins, and inefficiency in investment in technology are some of the reasons Wipro has not released variable pay.

    Catch all the Corporate news and Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates & Live Business News.

    More
    Less

    Subscribe to Mint Newsletters

    * Enter a valid email

    * Thank you for subscribing to our newsletter.



    Originally Published Here -Source link

    0 0 votes
    Article Rating

    Every Investor Must Have Bitcoin, Says Morgan Creek CEO

    Previous article

    Crypto.com Inks Agreement to Operate Under Canada’s Securities Watchdog

    Next article

    You may also like

    More in Companies

    Subscribe
    Notify of
    guest
    0 Comments
    Inline Feedbacks
    View all comments