Nearly 70% TCS staff return to office after new variable pay policy: Report (2024)

Tata Consultancy Services (TCS) has seen nearly 70% of its workforce return to office premises, reported moneycontrol.com, quoting the firm’s chief HR officer Milind Lakkad.

The employees returned after the company linked variable pay to attendance as part of a new policy.

Lakkad, however, said this policy is temporary.

In April 2024, TCS introduced a revised approach where quarterly variable payouts are tied to employees' office attendance.

Those maintaining less than 60% attendance are ineligible for the quarterly bonus.

The decision followed an earlier mandate requiring employees to work from the office five days per week.

Under the new guidelines, full variable pay requires a minimum of 85% attendance in the office.

Employees achieving 75-85% attendance receive 75% of their variable pay, while those at 60-75% attendance receive 50%.

Continuous non-compliance may result in disciplinary measures.

During TCS's Q1FY25 earnings conference, Lakkad addressed queries regarding the attendance-linked pay policy, highlighting potential implications for non-compliance without specifying exact penalties.

"Currently, nearly 70% of our employees have returned to the office," Lakkad said.

He also expressed optimism about increasing office attendance weekly and stressed the perceived benefits of physical presence, especially for those who joined during the pandemic and have yet to experience office work.

Lakkad highlighted the temporary nature of these measures from TCS's perspective, encouraging a positive outlook among stakeholders.

TCS reported a 9% year-on-year increase in Q1 net profit, reaching Rs 12,040 crore for the quarter, with revenue rising 5.4% to Rs 62,613 crore.