HCL Technologies has announced a major change in its compensation structure by converting quarterly variable pay into fixed salary for all employees, effective October 2025. The move is accompanied by the rollout of annual salary hikes, following the same process as last year, according to Chief People Officer Ram Sundararajan.
Previously, HCL Tech’s variable pay had two components. The first, applicable to most project-based employees, was linked to project performance and paid quarterly. This component has now been merged with fixed pay and will be distributed as part of the monthly salary. The second component — the annual performance bonus — will remain unchanged and continue to be based on individual performance.
The change is expected to benefit junior employees the most, while senior staff will continue to receive performance-linked bonuses annually.
The company also reported a decline in voluntary attrition, which dropped to 12.6% in September 2025, compared to 12.9% a year earlier. As of September 30, 2025, HCL Tech employed 226,640 people, marking a net addition of 3,489 during the quarter and 8,019 year-on-year.
