Tata Consultancy Services (TCS) has updated its policy to tie quarterly variable pay to employees’ office attendance. Reportedly, as per the latest update, those with less than 60 percent attendance will not qualify for the quarterly bonus. This change follows the mandate from the IT services giant for employees to work from the office five days a week.
Sources informed Moneycontrol that TCS recently revised its policy on the internal HR portal, notifying employees of these changes.
TCS New Policy For Employees
As per the revised policy effective April 17, the company now requires a minimum attendance of 85 percent for employees to be eligible for full quarterly variable pay. Failure to meet this requirement consistently may result in disciplinary actions.
TCS Variable Payment Rule
According to a TOI report, employees with 75-85 percent attendance at the office will receive 75 percent of their variable pay, while those with 60-75 percent attendance will receive only 50 percent of their variable pay.
“The TCS India Policy Working Hours Policy and the TCS India (BPS) Policy Working Hours define the Working Hours for the organisation, which every employee is expected to comply with at all times from TCS designated work premises (any reference to this includes TCS offices, Client locations or any other TCS designated physical location for the scope of this document),” Moneycontrol quoted the copy of the notification.
It added, “In the recent past, the organisation had taken temporary measures to enable associates to work remotely. as an immediate and required response to the Global Pandemic. With the social environment returning to normalcy, this has been discontinued and it is expected that all associates ensure their physical presence at the workplace.”
TCS Hybrid Work Model
TCS had been implementing a hybrid work model post-pandemic, which was discontinued on October 1, 2023, with employees mandated to work from the office five days a week.
In February 2024, TCS sent an email to employees notifying them that their variable pay would soon be tied to their attendance at the office site.
TCS Results Q4 2024
In a recent message to employees summarising the company’s performance for FY24, TCS CEO and MD K Krithivasan mentioned that during the fourth quarter ending on March 31, most employees “returned to the workplace, fostering shared experiences, enhancing learning, collaboration, and camaraderie.”
“As we build on this momentum, I have no doubt that together we will unlock many new opportunities,” he had said.
TCS Results Q4 2024
TCS announced a 9.1% increase in its net profit for the March quarter, reaching Rs 12,434 crore. According to an exchange filing, the company’s net profit for the fiscal year 2023-24 rose by 9% to Rs 45,908 crore.
The Tata Group company’s post-tax profit during the January-March period last year stood at Rs 11,392 crore.
In the March quarter, its revenue grew 3.5 per cent to Rs 61,237 crore year on year. Its operating profit margin expanded by 1.50 per cent to 26 per cent.
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