Tata Consultancy Services (TCS), India’s largest IT services company, has announced that all employees at or below the C2 grade will receive 100 per cent of their quarterly variable pay for the third quarter of the 2022-23 fiscal year. Those above the C2 grade will have their variable pay determined by the company’s business performance. This information was shared in an email from the office of the chief human resource officer, Milind Lakkad.
According to an employee at TCS, the C3A grade and above include mid to senior-level employees. They explained that the C2 grade typically includes employees with at least four years of experience and that positions at the C3A grade level are considered entry-level for mid-level positions, with positions above that being considered mid to senior level.
In the second quarter of the FY 2022-23, TCS distributed variable pay to 70 per cent of employees, with the remaining employees receiving variable pay based on the performance of their business unit.
On January 6, 2023, TCS announced its financial results for the third quarter of the 2022-23 fiscal year. The company reported a profit of Rs 10,846 crore for the quarter ending December, an 11 per cent increase compared to the same quarter the previous year.
Additionally, TCS’s revenues for the quarter rose 19.10 per cent year-over-year to Rs 58,229 crore, and were up 13.5 per cent on constant currency terms. The company’s operating margin for the quarter was 24.5%, a decrease of 0.5 per cent year-over-year.
This is the first time in 10 quarters that TCS’s headcount has decreased compared to the previous quarter. The company’s headcount at the end of September was 6,16,171 and at the end of December it was 6,13,974, a reduction of 2,197 employees.