Wave of happiness in IT sector, TCS opened treasury, big increase in variable pay; Know who will get 80% bonus

TCS Variable Pay Hike 2026: India’s leading IT company Tata Consultancy Services has given great relief to its employees. The company has increased the variable pay of mid and senior level employees to 80 percent for the third quarter. This is considered to be the biggest improvement after the last two years, when employees were getting only 20 to 50 percent variable pay.

This decision is expected to improve sentiment in the IT sector, especially at a time when there are concerns about jobs and demand due to Artificial Intelligence. According to the report, the company expects demand recovery in 2026 and is betting big on AI projects.

Benefits to mid level employees

According to Bussiness report, mid-level employees have received about 80 percent variable pay for the October to December quarter. This is very close to the variable component written in their offer letter. Senior level employees have received variable pay ranging from 40 to 80 percent. Earlier, many employees were getting less bonus for a long time, due to which dissatisfaction was also seen within the company.

How much bonus did the company give earlier?

In the last two years, TCS had limited the variable pay of mid and senior employees by 20 to 50 percent. The company claimed that more than 70 percent of its employees were getting 100 percent variable pay, but this mostly applied to junior employees. Due to weak global IT demand, cut in client spending and macroeconomic uncertainty, companies were reducing spending, which had an impact on bonuses.

Infosys has also given relief

TCS is not the only company that has increased the bonus. Infosys has given an average of about 85 percent variable pay for the December 2025 quarter, which is considered to be the strongest bonus in the last three and a half years. This indicates that big IT companies are now again in the mood to increase expenditure on employees.

Cognizant has announced 100% bonus

IT company Cognizant plans to give 100 percent bonus for 2025. The company has achieved its internal performance benchmark Winner’s Circle, completing it two years ahead of schedule. This shows that global IT companies are now focusing on rewarding employees based on performance and profitability.

Confidence increased through AI strategy

TCS recently reported that it has achieved annualized AI revenue of $1.8 billion and has completed more than 5000 AI projects so far. The company is considering Artificial Intelligence as the biggest driver of its future growth. Management expects IT spending to increase in 2026 and demand recovery to be driven by new digital and AI projects.

What it means for employees and the market

Increase in variable pay means that companies are more confident about their business. This is considered a positive sign for job security and salary growth in the IT sector. it stocks But this may also have an impact as there are indications of better demand and high margin projects.

Also read: Reliance’s masterstroke in the world of AI, announcement of investment of ₹ 10 lakh crore; Lakhs of youth will get jobs

New trend in IT sector

In the last few years, IT companies were in cost cutting mode. Now the focus is on AI, digital transformation and high value projects, through which companies can earn higher margins. Employees have started getting its benefits in the form of bonus and salary.