Employees at Tata Consultancy Services Tata Consultancy Services have reported dissatisfaction after the company reportedly restructured its compensation framework, linking a larger portion of variable pay to attendance and deployment metrics as part of a revised salary structure introduced during the latest appraisal cycle.

According to employee accounts cited in reports, the company has shifted the variable pay component for staff working from office into a monthly “performance pay” structure. This component is now said to be tied to workplace attendance patterns as well as project deployment metrics, marking a notable change in how short-term compensation is calculated and distributed across its large workforce.

The restructuring comes alongside annual salary increments, with average hikes reported in the range of 5% to 8% for most employees. Higher-rated performers are said to have received double-digit increases of around 10% to 13%, while employees in lower performance bands reportedly received increments between 2% and 3%, widening internal concerns over pay distribution and performance evaluation outcomes.

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Employees have also raised concerns over changes in the timing and structure of incentive payouts. The performance bonus component, which was earlier disbursed quarterly, is now reportedly being moved to an annual cycle and is no longer directly linked to attendance. At the same time, the monthly performance-linked component has been adjusted, with some employees reporting reductions in predictable take-home salary due to the revised structure.

In addition, several employees have claimed that changes introduced under the new salary framework have affected the way cost-to-company (CTC) elements are structured, including adjustments to gratuity-related calculations in some cases. These developments have added to concerns among staff about long-term earnings predictability and potential implications for future job negotiations and external mobility.

In response to queries, the company has maintained that the revisions are aligned with regulatory requirements under updated labour codes, as well as efforts to standardise wage structures across its India workforce. It has also stated that the intent of the restructuring is to protect employees’ take-home salary while introducing greater flexibility and tax efficiency, while clarifying that attendance remains a factor in variable pay with certain rationalisation measures applied.

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