TCS has said that it would affect the "Variable Pay". This is typically the bonus. This is usually around 8-10% over and above the salary.. So all that is happening is that they are getting a lower bonus.. This happens in all companies every year depending on performance. The variable pay is a reality in the senior management levels. But they are a smaller cream who are directly responsible for the numbers.
So the whole article is more a wordplay rather than anything substantive.