India’s largest IT services company, Tata Consultancy Services (TCS), has announced 100 per cent quarterly variable pay for a majority of its workforce for the April–June 2025 quarter (Q1FY26), as per a report by The Economic Times.
According to The Economic Times, in an internal email to employees last week, Chief Human Resources Officer Milind Lakkad said that over 70 per cent of TCS employees will receive full quarterly variable allowance (QVA) for the period.
Full payout likely for junior employees
“All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100 per cent of the Quarterly Variable Allowance (QVA),” Lakkad said in the email according to The Economic Times. These grades include entry-level and junior roles such as trainees and systems engineers.
The company’s grade structure starts at Y (trainee), followed by C1 (systems engineer), C2, C3 (A & B), C4, C5, and the CXO level at the top.
Performance-based payout likely for senior staff
For employees in C3 grade and above, the variable pay will depend on the performance of their respective business units. This segment includes more senior professionals and managers.
“The individual pay-out for the C3 grade and above may vary, depending on business performance,” Lakkad noted in the message, which was reviewed by ET.
TCS returns to net hiring in Q1FY26
TCS recently announced its first-quarter earnings for the financial year 2026 on July 10. In the April–June quarter, TCS added over 5,000 employees, marking a return to net hiring after three straight quarters of headcount decline. The company’s total workforce now stands at 6,13,069 as it ramps up capacity in anticipation of future demand recovery.
“We have honored all the job offers, and we’ll do so for the rest of the year. Lateral hiring will be recalibrated based on the demand outlook,” said Milind Lakkad at the post-earnings conference call.