No office, no raise: TCS suspends anniversary appraisals over attendance non-compliance

Bengaluru: Tata Consultancy Services (TCS), India’s top information technology provider, has reportedly suspended final anniversary appraisals for a segment of its workforce, citing non-compliance with the firm's mandatory five-day work-from-office (WFO) policy.

The move marks a significant escalation in the company's efforts to enforce physical office attendance, a policy that has already seen variable pay linked directly to a return-to-office threshold.

According to internal communications reviewed by The Times of India and other reports on Wednesday, the IT giant has halted the processing of one-year anniversary increments for employees found to be in breach of WFO requirements during the July–September 2025 quarter. While individual performance reviews may have been completed by supervisors, the corporate headquarters has blocked the final processing of pay raises for those failing the attendance mark.

The disciplinary measures could have long-term consequences for career growth in fiscal year 2026. The company cautioned that:

• Banding Exclusion: Staff whose appraisals remain uncommitted by January 2026 due to continued non-compliance will be barred from the FY26 banding cycle.
• No Performance Ratings: Affected employees will not receive a performance band, effectively stalling eligibility for promotions and future career advancement.
• Disciplinary Categorisation: Continued failure to meet the 85% attendance requirement—roughly four to five days a week—is now being treated as a formal disciplinary issue rather than a minor administrative lapse.

TCS has taken a notably harder line than its "Big Four" peers in rolling back pandemic-era remote work. While competitors such as Infosys and Wipro generally mandate two or three days in the office, TCS remains firm on a full work week. The company previously introduced a tiered variable pay system where employees attending less than 60% of the time received zero bonus, while only those exceeding 85% remained eligible for full payouts.

Company executives have consistently defended the mandate as a vital step to preserve "organisational culture" and facilitate the mentorship of junior staff.