TCS Set To Roll Out Salary Hikes With Increases Of 4-8%: Report
New Delhi: Tata Consultancy Services (TCS), India’s leading IT services giant is gearing up to implement its annual salary hikes for the fiscal year 2025. According to a recent report by The Economic Times, employees can expect the revised pay to be credited starting in April, with salary increases ranging from 4 per cent to 8 per cent.
TCS’s compensation update follows a similar move by Infosys which recently announced that it will issue annual compensation revision letters to its employees before the end of March. Infosys salary hike will range from 5 per cent to 8 per cent, as per the report.
Over the years, salary increments at top IT companies have steadily declined. During the COVID-19 pandemic, when the IT sector saw significant growth, salary hikes were often in double digits. However, in the past two years, these increments have dropped to single-digit percentages.
In FY24, TCS employees saw an average salary hike of 7-9 per cent, compared to around 10.5 per cent in FY22. The slower growth of the IT sector, along with global economic challenges has led to a more modest increase in salary increments at major companies.
In addition to company performance, TCS has tied salary hikes and variable payouts to employees’ adherence to its return-to-office (RTO) policy. The company made it mandatory for employees to return to the office in early 2024, and those who followed this requirement are more likely to receive higher salary increases.
On the financial front, TCS reported an 11.95% year-on-year (YoY) increase in consolidated net profit, reaching Rs 12,380 crore for the December quarter, up from Rs 11,058 crore last year. Net sales grew by 5.59 per cent, rising to Rs 63,973 crore from Rs 60,583 crore in the same period last year. In constant currency terms, sales saw a 4.5 per cent YoY growth.
