Tata Consultancy Services (TCS) has denied media reports that it has reduced bonuses for senior employees. It clarified that more than 70% of its employees have been given 100% variable allowance (QVA) for the January-March 2025 quarter. The QVA for the remaining employees depends on the performance of their units, and this is the usual practice of the company.
Media reports had said that some senior employees got only 20% QVA, which caused concern in the IT sector. The company had earlier postponed annual salary hikes.
TCS clarified that the QVA structure is based on the financial and operational performance of the unit, so employees in the same grade can get different bonuses.
The company had announced a delay in annual salary hikes in April 2025, but also stated that it continues to invest in skill development, training, and internal talent.
It recruited 625 employees in the fourth quarter, and the attrition rate also fell by 1.3 per cent year-on-year. Also, 42,000 freshers have been inducted in FY25. CEO Kritivasan, while acknowledging some slowdown in business, presented a vision of balancing expenses and investments.