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TCS Salary Hike 2025: Annual hikes at most top-tier companies have seen a slowdown in the past few years amid the global economic woes affecting the IT sector.
In FY22, the average salary hike at TCS was 10.5 per cent, which came down to 7-9 per cent in FY24.
TCS Annual Increment: Tata Consultancy Services (TCS), India’s largest IT services company, is expected to roll out annual salary hikes in March. The increments, which will take effect from April 2025, are likely to remain between 4 per cent and 8 per cent, according to an Economic Times report citing people with knowledge of the matter.
According to the report, annual hikes at most top-tier companies have seen a slowdown amid the global economic woes affecting the IT sector. During the COVID-19 period, IT employees saw salary hikes in double digits.
“We have been conveyed the hikes will be around 4-8 per cent. The business verticals which have done well typically get more hikes but overall increments have not been too good,” according to the ET report citing an employee.
In FY22, the average salary hike at TCS was 10.5 per cent, which came down to 7-9 per cent in FY24.
TCS has a total of 6,07,354 employees, as of December 2024. The IT giant aims to hire 40,000 freshers by the end of March with a higher target for FY26.
Tata Consultancy Services has also linked its salary hikes and variable payouts to employees’ compliance with its recent return-to-office (RTO) mandate announced early in 2024.
TCS reported a 5.5 per cent rise year-on-year (YoY) in its net profit to Rs 12,380 crore for the third quarter of the current financial year 2024-25 (Q3 FY25). Its revenue during October-December 2024 increased 5.6 per cent to Rs 63,973 crore. On a constant currency basis, TCS’ revenue rose over 4.5 per cent YoY during the October-December 2024 period.
Meanwhile, Infosys, India’s second-largest software company, is expected to issue salary hike letters to its employees by the end of February, with average increases expected to range from 5 per cent to 8 per cent. Infosys employs over 3.23 lakh professionals.
