Tata Consultancy Services (TCS), one of India’s largest IT services firms under the leadership of Ratan Tata is set to announce annual salary hikes for its employees for the financial year 2025-26. However, the expected increment this year is likely to be the lowest in the past four years. According to a report by the Economic Times, the salary hikes, which are set to be rolled out this month, will range from 4 to 8 percent on average.
TCS, in February announced its quarterly variable pay (QVP) for the October-December period. Many junior and mid-level employees will receive the full 100 per cent of their variable pay while senior employees will see lower increments with payments ranging from 20 per cent to 40 per cent.
TCS classifies its employees into various categories based on their positions and seniority within the company. The lowest grade, ‘Y,’ includes trainees, followed by levels such as C1 (systems engineers), C2, C3-A & B, C4, C5, and CXOs. Senior-level staff are considered those at the C3B level and above.
Importantly, TCS has tied salary hikes and variable pay to employees’ adherence to the company’s return-to-office (RT) policy, introduced in early 2024, which requires most employees to work in the office five days a week.
A report by SightsIn Plus suggests that TCS offsite employees can expect a salary hike of 7-8 per cent, while onsite employees are likely to see a smaller increase of 2-4 per cent. Additionally, high-performing employees may receive a more substantial raise, ranging from 12-15 per cent.
The upcoming salary hike is set to be the lowest for TCS employees in the past four years. In FY24, employees received an average hike of 7-9 per cent, followed by 6-9 per cent in FY23 and 10.5 per cent in FY22. Earlier this year, TCS reported a decrease of 5,370 employees in the October-December quarter, reducing its total workforce to 607,354. The company also saw a slight increase in its attrition rate, rising to 13 per cent in Q3 from 12.3 per cent in the previous quarter.
Despite this, TCS’ HR chief, Milind Lakkad, confirmed that the company plans to hire 40,000 freshers in FY25 and aims to increase campus recruitment in the coming fiscal year. Lakkad also highlighted that promotions have been a key focus, with over 25,000 associates promoted in Q3 alone, bringing the total promotions for FY25 to more than 110,000—almost 20 per cent of its workforce.
Stay informed on all the , real-time updates, and follow all the important headlines in and on Zee News.
