TCS Defers FY25 Salary Increments, Keeps Door Open for Revisions Later in the Year
Tata Consultancy Services (TCS) has decided to defer its planned salary hikes for the financial year 2024-25, surprising many employees and industry watchers. This announcement was made during the company’s Q4FY25 earnings press conference in April.
What Was Expected?
- Offshore employees were expecting 7-8% hikes
- Onsite employees anticipated 2-4% hikes
- High performers stood to receive 12-15% increments
However, the IT major has chosen to take a cautious stance, citing economic uncertainties as the key reason behind this decision.
Official Word from TCS
Speaking at the press conference, Chief Human Resources Officer Milind Lakkad clarified that the move shouldn’t be viewed as a “delay” or “deferral,” but a strategic and prudent call. He emphasized that TCS traditionally rolls out raises in the first half of the fiscal year and would monitor the business landscape before making any decisions.
“We are closely watching market conditions and will take a call when the situation becomes clearer,” said Lakkad.
This is only the second time since the COVID-19 pandemic that TCS has postponed salary revisions.
A Look at Salary Trends
TCS’s current hike projection of 4–8% for FY25 marks the lowest in the past four years, reflecting an industry-wide trend of slowed salary growth in India’s IT sector:
- FY2021-22: Avg. hike of 10.5% (strong post-pandemic demand)
- FY2022-23: 6–9%
- FY2023-24: 7–9% (global slowdown impact)
- FY2024-25: Projected 4–8% (lowest in 4 years)
What This Means for Employees
While the move has sparked concerns, there is still hope. TCS has not ruled out revisiting or revising increments later in the fiscal year, depending on how the global and domestic business climate evolves.
In Summary:
- TCS has paused FY25 salary hikes due to economic uncertainty.
- Employees may still see hikes later in the year if business improves.
- The IT sector is witnessing a broader trend of conservative compensation growth.
