Despite tough times in the IT sector, Tata Consultancy Services has doled out salary hikes of 6 to 8 per cent on an average to its employees in India, according to people familiar with the matter.
High performers -- employees in the top-rated A+ category -- have received a raise of over 10 per cent, sources added.
For TCS, it was a return to the normal wage hike cycle after a delay last year, resulting from macroeconomic uncertainties which pushed back hikes to September.
It had, however, said in April that all employees would again receive hikes from that month.
At India’s largest IT services company, staff are categorised in bands A+, A, B, and C.
'In line with the announcement made during our Q4 earnings, we have rolled out annual increments to eligible employees,' the company said in a statement.
'Additionally, we have completed the restructuring of compensation for all our India-based employees to align with the new labour Codes. The revised salary structure that the employees have received is guided by three key principles. They are compliance with the new labour Codes, standardisation of wage structures across our India workforce, and protection of employees’ take-home salary, while allowing flexibility for tax efficiency.
'TCS has consistently maintained a track record of awardi ng annual increments to its associates year-on-year, reinforcing its commitment to employee growth and long-term value creation,' it added.
Employees, who were rated the lowest, also received about 2 to 3 per cent hikes, while overseas employees got between 2 to 4 per cent.
In its latest annual report published last week, the company said the average annual increase for junior and mid-level employees for 2025-2026 was in the range of 4.5 to 7 per cent, with top performers in India receiving double-digit increments.
TCS had a headcount of 584,519 at the end of March 2026.
-- Avik Das, Business Standard
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