TCS to Roll Out Salary Hikes Soon; Expected Increases Between 4-8%
TCS Market Valuation Drops by ₹53,185 Crore Amid Bearish Trends; Biggest Weekly Loss Among Top IT Firms
Tata Consultancy Services (TCS), India’s largest IT services firm, is set to announce annual salary hikes for the fiscal year 2025. Employees can expect increment letters in March, with revised salaries taking effect from April. Sources suggest that salary increases will range between 4% and 8% this year.
In comparison, TCS offered an average hike of 10.5% in FY22, which declined to 7-9% in FY24. The company, which currently employs 607,354 people, is also planning to recruit 40,000 fresh graduates by the end of March, with a larger hiring target for FY26.
TCS has linked its salary increments and variable pay to adherence to its return-to-office policy, introduced in early 2024. A company employee told ET that while the usual trend is for high-performing business units to receive better hikes, overall increments have been modest.
These salary hikes follow the quarterly variable pay disbursement for October-December, which was released in February. Senior-level employees reportedly received lower payouts, ranging between 20% and 40%. The IT sector, valued at $254 billion, has seen a shift from double-digit salary hikes during the high-growth COVID-19 era to single-digit increments in recent years.
Meanwhile, Infosys, India’s second-largest IT firm, has also announced that employees will receive compensation revision letters by March-end, with salary hikes expected between 5% and 8%.
TCS follows a structured grade hierarchy, starting from Y (trainees) and progressing through C1 (systems engineers), C2, C3 – A&B, C4, C5, and up to CXOs. Employees in the C3 and lower grades, who make up around 70% of the workforce, received their full variable pay this year. However, one long-term employee at TCS commented that salary hikes have remained relatively low for the past three to five years, despite signs of business recovery in the IT sector.
