TCS announces 100% variable pay for 70% of its employees

Tata Consultancy Services (TCS), the largest IT services company in India, will make 100% variable pay for a majority of its employees for the quarter ended September 2023.

In its post-earnings conference call, TCS’ Chief Human Resources Officer Milind Lakkad announced a 100% variable for 70% of its employee base in Q2FY24.

The remaining employees will get variable pay based on their business unit’s performance, he informed.

“We are going to have hundred percent of the variable pay for 70% of our workforce and the remaining workforce will get paid based on the business unit performance,” Lakkad said, answering a media query.

In the June quarter as well, TCS had released 100% variable pay.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

On Wednesday, TCS posted a 2.4% QoQ rise in its consolidated net profit for the second quarter of FY24 to ₹11,342 crore.  The IT major’s consolidated revenue from operations rose 0.5% to ₹59,692 crore in Q2FY24, from ₹59,381 crore, QoQ.

Read TCS Q2 Results Highlights here

TCS’ total workforce as on September 30, 2023, fell by 6,333 employees to 608,985, from 615,318 employees in the previous quarter. The attrition rate declined further to 14.9% during the September quarter. 

Also Read: TCS Q2 Results: IT attrition rate drops further to 14.9% in September quarter

“Our attrition rate continues to improve. On LTM (last twelve months) basis our IT attrition has reduced to 14.9% from 17.8% in the first quarter," the company said.

TCS also approved share buyback up to ₹17,000 crore at ₹4,150 per share, and second interim dividend of ₹9 per equity share.

Catch Live Market Updates here