Business · Companies · 1 day ago
TCS withholds quarterly bonuses for senior staff after missing targets
Tata Consultancy Services, India’s largest IT company, will withhold quarterly variable pay from employees in grade C3A and above for the September quarter.
The company said its performance fell short of internal targets.
These grades typically cover staff with seven to 10 years of experience and extend to senior management.
Junior employees will receive 100% of their eligible variable pay.
Employees said TCS typically awards 50% to 100% of variable pay, and that this is the first time in at least two years it has explicitly withheld all of it from some workers.
TCS also recorded its weakest sequential September-quarter revenue growth in three years, although revenue linked to artificial intelligence rose nearly 20%.
The decision affects senior staff pay as the company faces pressure on traditional IT services demand.
Tata Consultancy Services will withhold quarterly variable allowance from employees in grade C3A and above for the September quarter after performance fell short of internal targets.
The decision was announced in an internal memo by Sudeep Kunnumal, TCS’s chief human resource officer.
Junior-level employees will receive 100% of their eligible variable pay, the memo said.
Employees told Reuters that TCS typically awards 50% to 100% of variable pay and that this was the first time in at least two years the company had explicitly said some workers would receive no bonuses.
TCS reported its weakest sequential September-quarter revenue growth in three years, while AI-related revenue rose nearly 20%.
- Who
- Tata Consultancy Services employees in grade C3A and above
- What
- Quarterly variable allowance was withheld from senior staff, while junior-level employees will receive 100% of eligible pay.
- When
- September quarter of 2026
- Where
- Tata Consultancy Services, India
- Why
- The company said its performance for the quarter fell short of internal targets.
This story does not have two clearly opposing sides.
For associates C3A grade and above, there will be no QVA (quarterly variable allowance) this quarter. This decision was taken after careful consideration as our performance for the quarter fell short of internal targets,
This story does not have a timeline yet.
- Employees affected
- C3A grade and above, typically staff with 7–10 years of experience through senior-level management
- Junior-level variable pay
- 100% of eligible pay
- Sequential revenue growth
- 0.5% in constant currency, according to Mint
- AI-related revenue
- Rose nearly 20%
- Typical variable pay cited by employees
- 50% to 100%
Sources
Related news
India opens dollar window for oil companies to support the rupee
Musk says Starlink will be affordable in India as it seeks to compete with Jio
DMart Q2 profit rises 8.5% as revenue grows 17.8%
Hyundai nears 10 million cumulative vehicle sales in India
Amitabh Kant urges India to cut bank liquidity ratio to boost manufacturing
SEBI expects derivative expiry-price guidelines within a week
Musk criticizes Ambani as Starlink awaits approval to launch in India
Vellore job fair draws more than 2,000 participants and 100 companies
Musk renews criticism of Ambani over Starlink’s planned India launch
White paper examines AI’s effects on India’s workforce
Tea Board plans changes to make India’s tea auctions more efficient
