Tata Consultancy Services (TCS) will introduce its annual salary increments in March, with payments starting in April. According to reports, these hikes will range from 4 per cent to 8 per cent, as stated by CNBC news,
Salary increases in major Information Technology (IT) firms have slowed down in recent years, mirroring industry trends, according to a report by the Economic Times. However, during the COVID-19 period, employees in the sector received double-digit increments. In FY22, TCS provided an average salary hike of 10.5 per cent, which declined to seven to nine per cent in FY24.
Currently, the company employs 6,07,354 people and has plans to onboard 40,000 freshers by March, with an increased hiring target for FY26.
"We have been conveyed that the hikes will be around four to eight per cent. The business verticals which have done well typically get more hikes, but overall increments have not been too good," an employee said.
TCS has tied salary hikes and variable pay to compliance with its return-to-office (RTO) policy, introduced in early 2024. The upcoming increments align with the company’s quarterly variable pay cycle, which was distributed in February for the October-December period.
Additionally, TCS recorded a 5.5 per cent year-on-year (YoY) growth in net profit, reaching Rs 12,380 crore in the third quarter of FY25. Revenue for the October-December 2024 quarter increased by 5.6 per cent to Rs 63,973 crore, with a 4.5 per cent YoY rise in constant currency terms.
Meanwhile, Infosys, India’s second-largest IT company, plans to issue salary increment letters by the end of February. Its salary hikes are expected to range between five per cent and eight per cent. Infosys has a workforce exceeding 3.23 lakh employees, CNBC news reported.
