TCS keeps WFO linked to variable pay, lower compliance cuts payouts

Bengaluru: TCS’ internal compensation documents show that employee performance pay continues to link to work-from-office (WFO) compliance and deployment metrics. Employees with a WFO index of 85% or above receive 100% of their performance pay, while payouts progressively decline at lower compliance levels and drop to zero for employees with attendance below 25%.

The policy further states that the deployment index (DI) impact is applied sequentially to the previous quarter’s average performance pay after accounting for WFO compliance.

TCS revised its variable pay framework in 2024 to formally include work-from-office compliance as a key parameter. The company also put on hold final anniversary appraisals for some employees due to WFO non-compliance in previous quarters.

When TOI reached out, a TCS spokesperson said: “WFO is still linked to the variable pay component with some rationalisation that is beneficial for employees.”

An illustration in the internal document reviewed by TOI shows that an employee with an average quarterly performance pay of Rs 1,000 and a WFO index of 77% would see the payout reduced to Rs 900. A further deployment-index adjustment would reduce the final payout to Rs 810.

The document also clarifies that salary revisions during a quarter will not alter the calculation methodology. “The impact of the WFO Index and DI on performance pay shall be applied to the average performance pay of the previous quarter,” it stated.

The performance-pay framework is part of a broader restructuring of compensation and benefits following the implementation of India’s labour codes. TCS told employees the move aimed at bringing “consistency and standardisation in wages across grades and levels.”