Backlash Over Quarterly Performance Bonus

Tata Consultancy Services (TCS), part of the Ratan Tata–led Tata Group, is facing backlash over its Quarterly Performance Bonus (QPB) system. The All‑India IT & ITES Employees Union (AIITEU) has accused the company of “strategic exploitation,” claiming that mid‑level staff such as assistant and associate consultants have received only 40–75% of their promised bonus over the past two years 0.

Attendance‑Linked Pay Sparks Discontent

Under the revised policy, employees must maintain at least 85% office attendance—resuming post‑COVID return‑to‑office mandates—to qualify for full QPB payouts. Many report receiving just ₹5,000–₹8,000 per quarter instead of the expected ₹40,000, leading to an annual loss of nearly ₹1 lakh 1.

Wider Salary Impact and Allowance Freeze

Employees report discrepancies between advertised CTC and actual take‑home pay, complicating matters like loan approvals and EMIs. Night‐shift allowances have remained stagnant at ₹360 per night for over a decade, while annual increments are reportedly low—around 3–4%—lagging behind inflation 2.

Offshore Staff Hit Hard

Offshore employees working abroad face additional issues, including salary splitting into local and Indian components and deductions despite favourable company performance. Some mid‑ and senior‑level staff report losing up to 40% of their salary due to withheld bonuses and allowances 3.

Bench‑Time Policy Adds Pressure

A new internal policy effective June 12, 2025 penalizes employees who are benched more than 35 business days or work fewer than 225 days annually. Critics describe this as unfair, arguing that bench time often results from project shortages—not employee fault 4.

Union Demands Transparency and Fair Pay

AIITEU’s General Secretary Saubhik Bhattacharya has demanded transparent and equitable salary structures that align with actual pay rather than misleading CTC figures. The union emphasizes restoring morale and financial stability for TCS’s nearly 6.1 lakh employees 5.

Context: TCS Bonus Payout Trends

While TCS asserts that over 70% of employees received full QPB in Q1 FY25, others received lower payouts based on business unit performance 6. Nevertheless, the current wave of complaints highlights persistent dissatisfaction over transparency and fairness in the bonus structure.

Source: India