Variable payout, also known as performance pay, is a part of the employee compensation that depends on both the performance of the employee and the overall performance of the company. Lately, IT companies have been scaling back on this part of the employee compensation.
Software majors like Tata Consultancy Services (TCS) and Wipro also recently announced that they have deferred, postponed, or reduced the variable payout to employees for the first quarter of the financial year 2023.
Wipro has decided to hold back variable pay for its mid and senior-level employees while fresher and junior-level staff will get variable pay after 30 per cent cut.