Employees of HCL Technologies will receive variable pay for the fourth quarter of FY 2022-23. The tech firm has assured that no changes are being made to its variable pay plans, and that 85 per cent of its workforce will be covered by a variable plan this quarter.
This news comes on the heels of Tata Consultancy Services (TCS) announcing 100 per cent variable payout for some of its employees in this quarter. The high-performing employees can expect an increment of 12 to 15 per cent. At TCS, employees are given the monthly performance pay every month as part of their salary, basis their performance for that month. All employees are eligible for this payout except for those on the bench, that is, those who are not working on any project. While all employees received 100 per cent variable pay last quarter, only 70 per cent employees will receive 100 per cent variable pay this quarter.
As per policy at HCL Tech, about five per cent of variable pay is given to employees, and no change has been made in the same. The ‘variable pay’ part of employees’ salary is determined by the company’s overall performance as well as the individual performance of each employee. Therefore, it is also called performance pay.
The Company has posted a growth of 18.5 per cent INR. Since the company has performed well, the employees will receive variable pay.
