HCL Tech Salary Update: Big news from the IT world—HCL Technologies is changing how it pays its employees. The company has decided to merge its quarterly variable pay with the monthly fixed salary, meaning employees will now get that portion as part of their regular pay instead of waiting for quarterly payouts.
The announcement came from Ram Sundararajan, Chief People Officer at HCL Tech, soon after the company’s quarterly results. It’s being seen as one of the most employee-friendly decisions in India’s IT sector this year.
So, what exactly does this mean, who will benefit, and why is everyone talking about it? Let’s break it down in simple terms.
Goodbye Variable Pay, Hello Fixed Salary: HCL Tech Salary Update
Until now, a part of HCL Tech employees’ earnings was called “variable ”pay”—money linked to project performance or business results. It was usually paid every quarter and could go up or down depending on how things went.
Now, HCL Tech has decided to make that money part of the monthly fixed salary. That means no more guessing or waiting to see if your variable pay will come through—it’s guaranteed every month.
Here’s how Ram Sundararajan explained it:
“We have decided to move the quarterly variable pay policy and merge it with the fixed salary for all employees.”
This change ensures that employees know exactly how much they’ll earn each month—making life, and financial planning, much easier.
How Things Worked Before
To understand why this is a big deal, let’s look at how HCL’s pay system used to work.
There were two main types of variable pay:
Quarterly Project-Linked Variable Pay:
This was tied to how well your project performed. It mostly affected junior and mid-level employees.Annual Performance Bonus (APB):
This is still around. It’s a yearly bonus given based on overall performance—both individual and company-wide.
So basically, HCL Tech has removed the quarterly variable pay but kept the annual bonus. This way, junior employees get stability, while senior staff still have performance incentives.
The Biggest Winners: Junior Employees
If you’re an entry-level or project-based employee at HCL Tech, this is good news.
For many junior employees, variable pay used to make their monthly income uncertain. Sometimes, if a project didn’t meet performance goals, the payout was smaller—which could mess up monthly budgets.
By turning this into a fixed salary, HCL Tech has made earnings steady and predictable. No more waiting for quarterly evaluations or worrying about how much you’ll actually take home.
It’s a relief for many employees, especially younger ones managing rent, EMIs, or family expenses. This move also sends a strong signal that HCL Tech genuinely cares about its people.
Salary Hikes Coming in October 2025
As if that wasn’t enough good news, HCL Tech has also confirmed its next round of salary hikes starting October 2025.
The company will follow the same process it used last year—evaluating performance and giving raises accordingly. So, employees will first benefit from the fixed salary structure now, and then again when the October 2025 increments kick in.
That’s a double win—steady monthly pay and an upcoming salary boost.
Attrition Rate Drops as Employee Confidence Grows
HCL Tech’s recent data shows that these people-focused policies are working. The company’s attrition rate—meaning the number of employees leaving the company—has fallen to 12.6% as of September 2025.
That’s down from 12.9% last year, showing that fewer people are choosing to quit.
HCL Tech’s total workforce has also grown to 226,640 employees, with 3,489 new additions in the last quarter alone. Clearly, more people want to join—and stay with—the company.
These numbers show that employees are feeling more secure and satisfied, especially with the promise of consistent pay and transparent policies.
Why This Move Matters
Merging variable pay into fixed salary might sound like a small tweak, but it’s actually a big deal for both employees and the company.
For employees, it means predictable monthly income—which helps with budgeting, planning, and peace of mind.
For the company, it simplifies payroll and builds trust with its workforce. Plus, keeping the annual performance bonus ensures that top performers still have incentives to aim higher.
In a competitive IT industry where talent often moves for better stability, this kind of approach helps HCL Tech stand out as an employee-first organization.
A People-First Move from HCL Tech
Under Ram Sundararajan’s leadership, HCL Tech has made several moves to improve employee satisfaction, but this one clearly stands out. It directly addresses one of the biggest concerns for IT employees — unpredictable pay.
By taking this step, the company has shown that it listens to its people and is ready to act on their feedback. It’s not just a business strategy; it’s a sign of empathy and awareness.
Looking Ahead
The HCL Tech Variable Pay to Fixed Salary policy is a strong statement—one that combines stability with growth. Add to that the HCL Tech Salary Hike coming in October 2025, and employees have plenty to look forward to.
Meanwhile, the drop in the HCL Tech Attrition Rate proves that these policies are already helping retain talent.
With steady earnings, clearer pay structures, and a focus on employee well-being, HCL Technologies is setting a new standard in India’s IT sector—one where stability and success go hand in hand.
Final Take
At its core, the HCL Tech variable pay to fixed salary move is about giving employees what they’ve always wanted—consistency, transparency, and peace of mind.
For junior staff, it’s a much-needed HCL Tech Junior Staff Benefit that makes life simpler. For the company, it’s a strategic win that strengthens trust and loyalty.
And when you combine that with the upcoming HCL Tech Salary Hike in October 2025 and the falling HCL Tech Attrition Rate, it’s clear that HCL Tech’s “people-first” philosophy is paying off—literally and figuratively.