TCS Claims 70% Employees Received 100% Bonus For January to March – Trak.in
Recent media reports suggesting Tata Consultancy Services slashed bonuses for senior employees have been refuted by the IT giant. TCS stated that over 70 percent of its workforce received their full Quarterly Variable Allowance for the January to March 2025 period. The company clarified in a statement that for remaining employees, the QVA is determined by their specific unit’s business performance, a practice consistent across previous quarters.
Standard Practice Maintained
TCS emphasized that its approach to variable pay remains unchanged. The company explained that the QVA structure is designed to align with the financial and operational success of individual business units. This means that bonus payouts can differ even among employees at similar levels, depending on their unit’s achievements. TCS did not specify the exact number of employees who received variable pay based on unit performance.
Context of Industry Scrutiny
This clarification comes at a time when employee compensation across the IT sector is under increased examination. Many companies are navigating a complex global economic landscape, leading to measures like delayed salary hikes and adjustments in bonus structures. Earlier in April 2025, TCS had already announced a delay in its annual salary increments, citing global economic uncertainties.
Workforce and Talent Strategy
Despite these cost-control measures, TCS added 625 employees in the last quarter and promoted over 110,000 employees throughout the fiscal year 2025. The company also onboarded 42,000 freshers in FY25 and intends to continue a similar hiring pace. While attrition slightly increased to 13.3 percent in Q4, the annualised rate showed a year-over-year decrease. CEO K Krithivasan acknowledged a slight dip in business momentum towards the end of the quarter, leading to a cautious outlook balancing talent investment with cost management.
