TCS Freezes Salary Hikes for FY26 But Maintains Promotion Cycle and Fresher Hiring Plans
In a strategic move prompted by global economic uncertainties, Tata Consultancy Services (TCS) has officially deferred its annual salary hikes for the financial year 2025–26. Traditionally rolled out in April, the salary increments have now been paused, with no confirmed timeline for implementation.
Milind Lakkad, Chief Human Resources Officer at TCS, explained the company’s cautious approach, citing macroeconomic concerns and shifting tariff policies. He emphasized that while raises are on hold, employee promotions remain unaffected and continue as per the company’s regular internal cycle.
“We will decide within the year when to implement the wage hikes,” Lakkad stated, without detailing the potential financial impact of the deferral.
Promotions Continue Unhindered
Despite the freeze on pay increases, the company’s promotion cycles are progressing normally. TCS Chief Financial Officer confirmed during the Q4 earnings briefing that promotions for FY25 were implemented as per schedule. Lakkad also reiterated that promotions for both junior and senior levels have not been delayed or disrupted.
TCS typically conducts two major promotion cycles — in July and January — for senior employees, while junior-level promotions occur on a rolling quarterly basis.
Hiring Plans Stay Strong
In a parallel development, TCS reaffirmed its commitment to nurturing future talent by announcing plans to hire 46,000 freshers in FY25, continuing its aggressive campus recruitment strategy despite the economic headwinds.
The company is also expanding its talent acquisition to international markets and focusing on niche tech skills such as cloud computing, artificial intelligence, cybersecurity, and data engineering. These skills are essential for addressing evolving client demands and maintaining TCS’s competitive edge.
“We are scaling up our hiring to align with the need for next-generation skills and to stay future-ready,” added Lakkad.
Conclusion
While salary hikes are on pause for now, TCS has struck a balance by staying committed to employee growth via promotions and robust fresher hiring. The company is taking a watchful approach in the current global economic environment, with compensation decisions expected once the landscape stabilizes.
This strategic step shows TCS’s resolve to maintain internal stability, reward performance through promotions, and prepare for the future with a skilled and scalable workforce.
