TCS to pay junior employees full variable pay

Business Oct 10, 2025

TCS just announced that junior employees (up to grade C2) will get a full 100% quarterly variable allowance as part of this year's salary hike, effective from September 25.
High performers in these grades can also expect solid pay bumps.
The update, shared by Chief HR Officer Sudeep Kunnumal, aligns with TCS's steady growth plans.

For senior employees, variable pay will depend on company performance

For those at grade C3A and above, variable pay will now depend on how the company performs—this comes after TCS saw a 3.8% dip in net profit last quarter, even though revenue went up by 3.7%.
TCS also trimmed its workforce by about 20,000 but kept its pool of AI/ML-skilled employees strong, indicating a possible shift toward specialized tech skills.