Tata Consultancy Services (TCS) has announced that it will pay 100% of its Quarterly Variable Allowance (QVA) to over 70% employees for the first Quarter (April-June) of the financial year 2025-2026 (Q1FY26).
This is the second quarter in a row that TCS has opted for a complete QVA payout for a major part of its workforce. This comes on the heels of Chief Financial Officer (CFO) Samir Seksari assuring the public that, while delayed, salary hikes remain a priority for the company.
TCS clarified that for Q1, employees in managerial and leadership roles will receive a variable amount of compensation based on the performance of their respective business units. This is a policy that the company has adhered to for the previous several quarters for those in higher-level positions.
“All employees up to C2 grade (or equivalent grades) covered under the QVA plan will receive 100% of the Quarterly Variable Allowance (QVA). The individual payout for the C3 grade and above may vary, depending on business performance,” Milind Lakkad, TCS’ Chief Human Resources Officer (CHRO), shared in a mail with employees as per The Economic Times.
Within TCS, the internal grading structure is used to distinguish employees at various levels of hierarchy. Trainees are at the Y-level, followed by system engineers at C1, then levels C2, C3, C4, C5, and executive leadership. Those in C3 and above are senior managers and business unit heads.
