Tata Consultancy Services (TCS) has continued to tie employee performance-linked pay to office attendance and deployment measures, according to internal compensation guidelines. The framework indicates that employees’ work-from-office (WFO) adherence remains a significant factor in determining the final amount of variable pay they receive.
As per the internal structure, employees who maintain a WFO compliance score of 85 per cent or higher are eligible for the complete performance payout. However, compensation gradually reduces as attendance levels decline. Employees whose office attendance falls below a 25 per cent threshold are not eligible for any performance payout under the policy.
The company’s compensation mechanism does not stop at attendance alone. Another factor, referred to as the deployment index (DI), is also applied during payout calculations. The impact of deployment is assessed after accounting for WFO compliance and is calculated on the average performance pay earned in the previous quarter.
An example in the internal framework illustrates the impact of the model. An employee with an average quarterly performance payout of Rs 1,000 and a WFO score of 77 per cent would first see the amount reduced based on attendance. Following this, the deployment metric further lowers the final payout amount.
The company had formally revised its variable pay system in 2024 to incorporate work-from-office compliance as a defined parameter. Around the same period, final anniversary appraisals for certain employees were reportedly paused due to non-compliance with office attendance requirements in earlier quarters.
TCS has indicated internally that the revised compensation structure is part of a broader effort to align salary and benefit frameworks with India’s evolving labour regulations. The restructuring exercise aims to create a more standardised and consistent approach across employee grades and levels.
