TCS to stop Variable Pay?

KOLKATA: (TOI):

Is a cut in variable pay in the offing for experienced staff at India's biggest IT company Tata Consultancy Services (TCS)? There is a fear that TCS-- which last resorted to such a step in the third quarter of 2007-08 -- may not pay employees upwards of trainees a portion of their variable pay for the second quarter of 2008-09 as part of an austerity measure forced by the global financial meltdown.

The apprehension is that employees, excluding trainees, may be denied the non-fixed portion of their variable pay for July-September 2008. Provided the fears come true, about 70 per cent TCS employees or nearly 70,000 staff would be impacted by such a step. Contacted for a response, a TCS spokesperson said: "We are now in a silent period and will be able to offer clarity on this only after our Q2 results are announced."

Variable pay at TCS is divided into two components -- a fixed portion which an employee is assured of at all times, and a changeable proportion which alters depending on the performances of the employee and the company. For instance, if the variable pay of an employee is Rs 100, he is guaranteed the fixed part or Rs 70 under any circumstances.

Courtesy: Sumali Moitra & TOI