Tata Consultancy Services paid out 100% of the Quarterly Variable Allowance (QVA) to more than 70% of its employees for the January-March quarter.

The company clarified that for employees in other grades, the QVA payout is determined by the performance of their respective business units, in accordance with TCS's established quarterly policy.

"We have paid out 100% QVA to more than 70% of the company. All other grades' QVAs are determined by their unit's business performance. This is consistent with our quarterly practice," TCS stated.

TCS reported a 1.7% decline in March quarter net profit to Rs12,224 crore, owing primarily to margin contraction.

It generated a total revenue of Rs64,479 crore in Q4 FY25, up 5.3 percent from the previous year.

The company hired 625 new employees in the quarter, bringing its total workforce to over 6 lakh.

TCS announced its Q4 and FY25 earnings last month, stating that it would defer annual wage hikes for its 6.07 lakh employees due to business uncertainties caused by tariff issues.

Milind Lakkad, the company's chief human resources officer, attributed the delay to business uncertainties. Annual wage increases typically begin in April. He did not, however, provide a timetable for when the company would announce the hikes.