TCS Uses Salary Freezes to Drive 100% Office Compliance

Tata Consultancy Services (TCS), India’s largest IT services exporter, has reportedly taken its most stringent stance yet on office attendance by halting anniversary appraisals for employees who fail to comply with its Work-From-Office (WFO) mandate.

This move marks a significant escalation in the company’s multi-year effort to transition its workforce back to a traditional office environment following the shift to remote work during the pandemic.

According to internal communications and employee reports, the company has linked the annual salary increment process directly to physical attendance records.

TCS is “freezing” or “delaying” the anniversary appraisal cycles of employees who fail to meet the mandatory five-day office threshold.

The Enforcement of Five-Day Mandate at TCS

TCS was among the first Indian IT giants to officially end the hybrid work model, demanding a full five-day work week in late 2023.

Throughout 2024 and 2025, the company utilized “soft” nudges, such as linking attendance to quarterly bonuses and variable pay.

However, the decision to halt the anniversary appraisal—the primary vehicle for salary hikes—represents a “hard” disciplinary pivot.

• Attendance Tracking: The company is utilizing automated badge-in data to monitor employee presence.
• The Compliance Threshold: While specific internal percentages are not public, reports suggest that employees falling below an 80-85% monthly attendance rate are being flagged by the Human Resources (HR) department.
• Appraisal Impact: For those flagged, the standard performance review that occurs on their work anniversary is being suspended. This effectively denies them the double-digit percentage hikes typically reserved for high performers.

The Rationale: Culture, Mentorship, and Productivity

TCS leadership, including CEO K. Krithivasan, has consistently defended the return-to-office policy.

TCS maintains that digital screens cannot effectively transmit the company’s unique culture.

1. Mentorship Gap: Leadership argues that junior associates (who make up a large portion of the 600,000+ workforce) are missing out on “osmotic learning” and spontaneous mentorship that only occurs in physical hubs.
2. Security and Compliance: For many banking and healthcare clients, data security protocols are easier to enforce within the controlled environment of a TCS campus.
3. Infrastructure Utilization: With massive investments in “Glow” campuses and SEZ units, the company is under pressure to justify the operational costs of its physical real estate.

Employee Backlash and the “Quiet Quitting” Risk

The move has sparked a wave of discontent across social media platforms and internal forums.

Many employees argue that the policy ignores the logistical challenges of urban commuting and the high cost of living near major tech hubs like Bengaluru, Pune, and Chennai.

Industry analysts warn that this “compliance-first” approach could lead to a talent drain.

While the IT sector has seen a cooling of the “Great Resignation,” specialized talent in AI and Cloud Architecture remains highly mobile.

If competitors maintain hybrid flexibility, TCS may face a spike in attrition among its mid-to-senior level staff.

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