TCS has fantastic news for all its employees

Tata Consultancy Services (TCS), one of India's leading IT corporations, will pay the June quarter's 100% variable costs as dividends and bonuses to its 6,000,000+ employees in August.

According to a report released on August 20, the variable pay distribution for the grades C3A, C3B, C4, and corresponding grades has been delayed by one month. These employees hold the titles of associate consultant, consultant, and assistant consultant. The decision came at a time when two of its competitors, Infosys and Wipro, have halted the adoption of variable remuneration for employees.

During the June quarter results, all Indian IT majors reported strong demand but severe margin contraction due to high employee costs. According to analysts, some corporations are adopting precautionary measures to reduce performance pay-outs to save money.