Variable payout, also known as performance pay, is a part of the employee compensation that depends on both the performance of the employee and the overall performance of the company. Lately, IT companies have been scaling back on this part of the employee compensation.
Milind Lakkad, chief human resource officer at TCS, said during the earnings call, “We are going to pay 100 per cent variable pay for 70 per cent of employees. The remaining 30 per cent will get paid based on their business unit performance. This is for Q2, July-September.”
India’s largest IT firm Tata Consultancy Services (TCS) to pay out full bonus to 600,000 plus employees even as peers Infosys and Wipro have curbed rollout of performance bonus due to margin pressure.