TCS cuts mid-senior variable pay to 60%-70% for April-June 2026
Business
Tata Consultancy Services (TCS) is cutting variable pay for some employees in its mid- and senior-level job bands to 60% to 70% for April to June 2026, down from as much as 80% in each of the preceding two quarters.
The main reasons? Rising costs from AI investments and pressure on operating margins.
TCS ties payout to 85% attendance
For a while, payouts were even lower, just 20% to 40%, before this bump.
Now, getting your full payout depends on showing up: at least 85% office attendance is required, while less than 60% means no payout at all.
TCS's operating margin dropped to 24% this quarter, partly because of salary hikes.
It's not just TCS. Infosys also trimmed payouts as IT companies juggle new tech costs with slower growth in traditional services.