TCS Employees Get Festive Cheer: 100% Variable Pay For Juniors, Hike For Seniors

TCS Variable Pay: After a steady quarterly earnings in Q2 FY26, Tata Consultancy Services (TCS) has announced to pay 100 per cent variable to junior employees and higher variable pay to its senior employees depending on individual and team performance.

TCS chief Human Resources Officer, Sudeep Kunnumal, said TCS has increased its overall quarterly bonus compared to previous quarters.

TCS’s variable pay news came after the India’s largest IT company announced the layoffs over 12,000 employees globally in July. This sparked an outcry across the sector which is already battered by less hiring, AI-driven shifts and slowdown of growth due to geopolitical turmoil.

TCS headcount fell over 19,700 in Q2FY26, standing at 5,93,314 employees as per its earnings

release.

TCS had announced 100% variable pay for more than 70% of its employees for the April–June quarter.

In an internal email cited by The Economic Times, Kunnumal informed employees that all staff up to the C2 grade will receive 100% of their Quarterly Variable Allowance (QVA).

For employees in the C3A grade and above, the payout will vary based on individual and business performance, he said, adding that the overall payout for this group will be higher than last year.

“The actual payout will depend on unit performance,” Kunnumal noted in the email.

TCS Q2 Performance

TCS on Thursday reported a 1.4% rise in its net profit to Rs 12,075 crore for the second quarter ended September 30, 2025, according to a regulatory filing. It reported revenue of Rs 65,799 crore during July-September 2025, up 3.7 per cent sequentially and 0.8 per cent in constant currency terms.

A CNBC-TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore.

The company had posted a net profit of Rs 11,909 crore in the corresponding quarter a year ago.

“We would like to inform you that at the board meeting held today, the directors have declared second interim dividend of Rs 11 per equity share of Rs 1 each of the company,” TCS said in the filing.