Tata Consultancy Services (TCS) has not announced salary hikes following its Q1 results. Chief HR Officer Milind Lakkad stated that the decision on increments will be taken later in the financial year, based on business performance and market outlook.
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TCS Defers Salary Increments for FY2025-26
India’s largest IT services company, Tata Consultancy Services (TCS), has decided to delay its annual salary hike cycle for now. In the Q1 FY2025-26 earnings call, TCS Chief Human Resources Officer Milind Lakkad confirmed that the company has not yet made a decision regarding employee pay hikes.
TCS typically rolls out annual salary increases in April, but due to evolving market conditions and business uncertainty, the company is taking a cautious approach this year. Lakkad emphasized that the company will assess the business environment before making a formal announcement.
Headcount and Attrition Updates
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TCS reported a total headcount of over 6.13 lakh employees as of Q1 FY2025-26.
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Net additions remained positive during the quarter.
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Attrition for the last 12 months rose to 13.8%, a slight increase compared to the previous quarter.
TCS is actively monitoring workforce trends and aiming to manage attrition levels with internal engagement and variable pay support.
Variable Pay and Employee Compensation
While the fixed salary hikes have been postponed, quarterly variable pay was fully paid out to over 70% of employees, according to internal sources. This move is seen as a short-term measure to maintain employee morale and performance while managing operational costs.
Industry Context
The delay in salary hikes at TCS reflects a broader trend among IT majors, many of which are dealing with:
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Global macroeconomic pressures
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Delayed client decision-making
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Margin tightening and hiring slowdowns
As the fiscal year progresses, updates on the increment cycle are expected to follow depending on revenue stability and deal pipeline strength.
