TCS Salary Hike 2025
IT Giant Set to Increase Salaries by Up to 8%—Employees Remain Unhappy. India’s largest IT services company, Tata Consultancy Services (TCS), is set to implement annual salary hikes ranging from 4% to 8% for the fiscal year 2025-26, starting from April 2025. However, employees remain dissatisfied, expressing concerns over declining increments compared to previous years.
TCS Salary Hike: What to Expect?
According to reports from The Economic Times, TCS has informed its employees about the upcoming salary hikes, which will vary based on business verticals and individual performance. Historically, business units that have performed well receive better salary hikes, while the overall increments have remained moderate.
A TCS employee shared their frustration, stating:
We have been told that the hikes will be between 4-8%. While some teams might receive better increments, overall, the hikes have not been great.
Salary Increments Linked to Office Attendance
TCS has also linked salary hikes and variable payouts to employees’ compliance with the return-to-office policy, which was introduced in early 2024. Employees who fail to adhere to the office attendance guidelines might see lower salary increments or reduced variable pay.
Despite being a tech-driven company, TCS has been pushing employees to return to the office at least three times a week. This move has sparked dissatisfaction among employees who prefer remote or hybrid work models.
Declining Increment Trends Over the Years
Many TCS employees believe that salary hikes have been on a downward trend for the past few years. One employee, who has been with the company for eight years, commented:
The hikes have been meagre for the last three to five years. The decline started after former CEO N Chandrasekaran left.
Additionally, senior-level employees at TCS are expected to receive lower variable pay, ranging from 20% to 40%, reinforcing concerns about shrinking compensation packages.
How TCS Compares to Infosys & IT Industry Trends
TCS is not the only IT major announcing salary hikes. Rival Infosys, the second-largest IT services company in India, is expected to increase salaries by 5% to 8% for its employees. Reports indicate that salary revision letters for Infosys employees will be rolled out by March 2025.
The Indian IT industry, valued at $254 billion, has been facing a slowdown in recent years. The post-pandemic boom saw double-digit salary hikes, but in the last few years, increments have settled into single-digit figures due to factors like:
- Slowdown in global IT spending
- Economic uncertainty in key markets like the US and Europe
- Rising cost pressures on IT companies
Employee Sentiment: Growing Dissatisfaction
While any salary hike is generally considered positive, employee dissatisfaction is on the rise due to:
- Lower-than-expected increments despite high workloads
- Return-to-office mandates impacting work-life balance
- Inconsistent variable pay based on business verticals
A significant portion of TCS’s workforce feels overworked and underpaid, especially given the company’s consistent profitability and large client contracts.
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FAQs
1. What is the expected salary hike for TCS employees in 2025?
TCS is expected to provide salary hikes ranging from 4% to 8% for the fiscal year 2025-26, starting from April 2025. The increments will vary based on business unit performance and individual employee performance.
2. How is office attendance affecting salary increments at TCS?
TCS has linked salary hikes and variable pay to employees’ compliance with the return-to-office policy. Employees who fail to adhere to the required office attendance (at least three times a week) may receive lower increments or reduced variable pay.
3. Why are TCS employees unhappy with the salary hikes?
Many employees feel the increments are lower than expected, especially given the company’s profitability. Additionally, the return-to-office mandate, workload concerns, and declining variable pay have contributed to growing dissatisfaction.
4. How does TCS’s salary hike compare to Infosys and the IT industry?
Infosys is expected to provide salary hikes in the range of 5% to 8%, similar to TCS. However, the IT industry as a whole has seen a slowdown in salary growth due to economic uncertainties, global IT spending reductions, and rising cost pressures.
5. Are senior-level employees at TCS affected differently?
Yes, senior-level employees are expected to receive lower variable pay, ranging from 20% to 40%, further adding to concerns about shrinking compensation packages.
Final Thoughts
While TCS’s 4-8% salary hike may seem decent on paper, employee reactions suggest widespread discontent. With declining salary growth, increasing return-to-office pressures, and variable pay uncertainties, the IT sector’s workforce is becoming more vocal about their concerns.
For now, all eyes will be on TCS and other IT giants to see if they address these issues and offer better incentives to retain their top talent.
Disclaimer: TN HEADLINES24 The information presented in this article is based on publicly available reports, media sources, and employee feedback. While TN HEADLINES24 strives to ensure accuracy, salary hikes and policies may be subject to change based on official announcements from Tata Consultancy Services (TCS) or other IT firms. Readers are advised to verify details from official company sources before making any career-related decisions. TN HEADLINES24 is not responsible for any discrepancies or changes in company policies.