Close on the heels of Wipro holding back variable pay for its C-suite members and paying only 30 per cent of variable pay to staff in bands A and B, now Wipro is also doing something similar.
The IT major has delayed the payment of variable pay and performance bonus to some of its employees for the June quarter, by a month.
Instead of July, the bonus and variable compensation will now be paid by end of August, to its consultants, assistant consultants and associate consultants.
The commission part of the remuneration paid to employees is variable, whereas the benefits, salary, perquisites and allowances form the fixed component.
As per TCS’ policy — which focuses on customer centricity and demands employee mobility as per project requirements — the remuneration is paid basis pay models that follow local regulations, and therefore, differs in each of its country of operation.
As per reports, TCS maintains that the delay in payment of variable pay and bonus is not an attempt to cut costs, but because the performance evaluation is yet to be completed; that it is an administrative issue that can be attributed to the massive headcount that needs to be dealt with.
The Company has well over six lakh employees in its workforce, and the variable pay, on a yearly basis, makes for 10 per cent of the pay package of the employees. The impacted employees have all worked for TCS for at least seven years, while some have completed about 15 years in the Company.