Tata Consultancy Services (TCS) has recently announced a new policy that links employees’ quarterly variable pay to their in-office attendance. This policy update comes after the company’s decision to require employees to work from the office five days a week, which was implemented a few months ago.
Under the new policy, employees who have an attendance rate below 60% will not be eligible for a bonus. Those with 75-85% attendance will receive 75% of their variable pay, while those with 60-75% attendance will only receive 50%.
The company has communicated this policy change to employees through an update on the internal HR portal. According to reports, TCS has set a minimum attendance rate of 85% to qualify for full quarterly variable pay, and failure to meet this threshold may result in disciplinary action.
TCS had previously adopted a hybrid work model post-pandemic, but it was discontinued on October 1, 2023, in favour of a five-day office workweek. In February, TCS had notified employees via email that their variable pay would soon be tied to their in-office attendance. The company had also warned employees of the consequences if they failed to comply with the mandate by March.
While TCS has been emphasizing the importance of returning to the office for teamwork, creativity, and building a collaborative atmosphere, some employees are concerned that this would upset the balance between work and personal life and ultimately affect their well-being, in addition to increasing the cost of commuting.
