TCS will roll out annual salary increases for FY25 in March, with payouts beginning in April and averaging between 4-8%.

INDIA NEWS By Aniket Chakraborty Feb 17, 2025 Arrow

The IT industry has seen hikes gradually slow from double digits during the Covid high-growth period to single digits over the past couple of years.

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TCS has linked salary hikes and variable payouts to employees' compliance with their recent return-to-office mandate announced early in 2024.

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Average hikes at TCS were 7-9% in FY24 and 10.5% in FY22, showing a downward trend.

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The latest hikes follow the quarterly variable pay released in February, with senior-level employees receiving lower payouts ranging from 20% to 40%.

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Around 70% of TCS employees received 100% of the variable pay, primarily those belonging to grade C3 and below.

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Some long-term employees report that hikes have been "meagre" for the past three to five years, declining since former CEO N. Chandrasekaran's exit.

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Current CEO K. Krithivasan signaled optimism about a business turnaround backed by strong deal wins with total contract value of $10.2 billion.

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TCS has promoted more than 25,000 employees this quarter, bringing the total for the fiscal year to nearly 110,000 of its 700,000-strong workforce.

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The company is on track to meet its fresher hiring target of 40,000 by the end of March, with plans for a higher target in FY26.

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