Tata Consultancy Services (TCS) has introduced a new policy tying employees’ quarterly variable pay to their in-office attendance. Now, employees with attendance below 60 per cent will be ineligible for the bonus.
This update follows the company’s decision to require employees to work from the office five days a week, a move implemented months ago.
Under the new policy, employees with 75-85 per cent attendance will receive 75 per cent of their variable pay, while those with 60-75 per cent attendance will only receive 50 per cent.
The policy change was communicated to employees through an update on the internal HR portal. The Times of India was the first to report on this development, revealing that TCS aims for a minimum of 85 per cent attendance to qualify for full quarterly variable pay. Failure to meet this attendance threshold may result in disciplinary measures.
TCS had previously adopted a hybrid work model post-pandemic, which was discontinued on October 1, 2023, in favour of the five-day office workweek.
In February, TCS had notified employees via email that their variable pay would soon be tied to their in-office attendance. Not just that, the company had warned employees of repercussions if they failed to comply with the mandate by March.
For some time now, TCS has been letting employees know how important returning to the office is for teamwork, creativity and building a good collaborative atmosphere. However, some employees are worried that this would disturb the balance between work and personal life, which will ultimately affect their well-being in addition to increasing the cost of commuting.
