TCS announces annual salary hikes across all grades effective April 1

IT major rolls out pay increases effective April 1 across grades, even as headcount declines year-on-year and the company steps up investments in AI-ready workforce

India’s largest IT services firm Tata Consultancy Services (TCS) announced that it is implementing annual salary hikes. These would be applicable from April 1st across grades. However, the quantum of hikes could not be ascertained.

 

Sudeep Kunnumal, Chief HR Officer, said “We have announced annual increments to all eligible employees across (21:32) grades effective April 1st with top performance getting a double-digit increase. In Q4, we continued to invest in a future-ready workforce with strong additions across experienced talent and campus hires.”

 

Kunnumal further added that building an AI-first culture and equipping our people with

 

AI-ready skills remained a key priority in FY26 and will continue into FY27, “as we align closely with our customers’ evolving needs.”

 

 

He also said that TCS will continue to hire freshers and experienced people with a focus on AI, data, enterprise solutions, software engineering, cloud, cybersecurity, and digital engineering. “In FY26, we also hired over 750 employees with deep advisory and consulting expertise. We stepped up our investments in talent development initiative as well,” he added.

 

The total headcount of the company at the end of the fiscal year was at 584,519. On year-on-year basis headcount continued to fall. The headcount at the end of FY25 was 607,979.

 

However, on a quarter on quarter basis, at the end of Q4 FY26 the company added 2,356 people.

 

The company said that it has a total of 270,000 employees with higher proficiency in AI and ML.

 

In FY25 the company had delayed salary hikes, effective September 2025, this was after a delay of five months. The quantum of salary hikes was in the range of 4.5 per cent to 7 per cent. While high performers continued to get double digit increases.