TCS announces 4.5-7% salary hikes, double-digit for top performers

TCS has resumed salary hikes with 4.5-7% raises for most staff and double-digit increments for top performers after delaying its annual review amid macroeconomic challenges

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A majority of employees at India's largest IT services firm Tata Consultancy Services (TCS) have received an annual salary raise of about 4.5-7 per cent, with exceptional performers bagging double digit hikes of at least 10 per cent, the company said.

 

The appraisal for the financial year 2024-25 will be effective from September. Employees will get their revised pay checks when their salaries are credited at the end of this month. The hike band is similar to last year.

 

TCS, which usually announces hikes in April, was the first company to stall it in April this year, citing unfavourable and uncertain macroeconomic environment. It maintained its position even in July while announcing its second quarter results. It formally announced the resumption of salary hikes last month, which are in line with what other IT services companies have usually given over the last few years.

 

The grade level at TCS starts with Y as trainees, systems engineer at C1, C2, C3 A & B, C4, C5 and CXOs. Employees from C3 band are usually classified as seniors. Hikes for the senior management are yet to be ascertained. 

 

TCS in July had announced plans to cut about 2 per cent of its workforce, or about 12,000 employees, saying they could not be deployed in projects due to rapidly evolving AI skillsets. It was also seen as a measure by the company to protect operating margins, which were under strain.

 

Analysts told Business Standard last month that the firing will give the company an opportunity to hike salaries for the rest of its employees.

 

Cognizant had last month said that it will hike salaries for a majority of employees effective November 1.

 

Infosys rolled out its FY25 salary hike in two phases. The quantum of hike was around 5-8 per cent and top performers received double digit raises. The increments were implemented in two phases, with some receiving hikes in January and others in April.