Tata Consultancy Services (TCS) is set to implement annual salary hikes for the fiscal year 2025 (FY25). Employees will receive increment letters in March 2025, with payouts commencing in April. The expected salary increases range between 4% to 8%, a decrease from previous years, where hikes averaged 7-9% in FY24 and 10.5% in FY22.
These increments are linked to employees’ adherence to TCS’s return-to-office policy, introduced in early 2024. Staff members complying with this mandate are more likely to receive higher increments.
This adjustment reflects a broader trend in the IT industry, transitioning from double-digit salary hikes during the COVID-19 period to more conservative, single-digit increases in recent years.
Additionally, TCS has recently released quarterly variable pay for the October-December period. Junior and mid-level employees received 100% of their variable pay, while senior-level staff saw reduced payouts ranging from 20% to 40%.
Overall, TCS aims to balance competitive compensation with business performance and evolving workplace policies.