Produced by: Aakanksha Ram Chaturvedi Designed by: Manoj Kumar
The variable pay or performance pay at IT services companies depends on the company’s overall performance, along with the performance of individual employees. Major IT companies have cut back on variable pay, noting that the sector faced volatility due to market conditions.
Tata Consultancy Services (TCS), which is the largest IT services company in India, informed its employees that it would roll out 100 per cent variable pay to majority of its employees for the quarter ended September 2023.
In its post-earnings conference call, TCS’ CHRO Milind Lakkad said, “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.”
The second largest IT company, Infosys, will roll out the September quarter performance bonus to eligible employees at an average of 80 per cent payout this month, the company said in an email to employees.
As per the email sent to employees, the payouts will be made in November, “This is to keep you all informed that the quarterly performance bonus payout for Q2 FY24 will happen in November 2023 payroll for all eligible employees.”
Wipro made a similar announcement in October. The IT company will pay 80 per cent of the variable pay for Q2 for junior employees whose payout is linked to company performance, Chief Human Resources Officer Saurabh Govil said post the earnings call.
Govil explained that the rest of the employees would get variable pay based on individual business unit performance. “Variable pay for the quarter will be in line with what we did last quarter. It will be different for different units based on their performance. Across, around 80 percent is what people will be getting,” the CHRO said.
Apart from variable pay, employees are also eligible for annual hikes across major Indian IT companies. Although TCS rolled out the annual hikes in time for its employees, Infosys and Wipro delayed the same.