TCS Salary Hike Trends: A Financial Year-wise View (FY22–FY26)

Tata Consultancy Services (TCS) has rolled out annual salary hike for employees across levels effective April 1, 2026, though the quantum of hikes has not yet been disclosed.

This follows its previous increment cycle in September 2025, when most employees received salary increases in the range of 4.5% to 7%, as reported by PTI.

TCS has undergone a noticeable shift in its salary hike strategy over the past few financial years, reflecting broader changes in the global IT industry.

From double-digit increments during the post-pandemic boom to more measured increases in the latest cycles.

Financial Year-wise Salary Hike Snapshot

• FY22: Average hike of ~10–10.5%, with top performers receiving 12–15%, driven by strong demand and talent competition.
• FY23: Salary increases moderated to 6–9%, while top performers earned 10–12%, reflecting early slowdown signals.
• FY24: Hikes remained stable at 7–9%, with top performers continuing at 10–12%, indicating balanced demand.
• FY25: Increments dropped to 4.5–7% for most employees, with up to 10% for top performers, amid margin pressures.
• FY25–26 (Latest Cycle): TCS announced hikes in September, maintaining 4.5–7% for most employees and up to 10% for top performers, reinforcing a cautious approach.

Shift in Strategy

In FY22, salary hikes were high because companies needed skilled workers and demand was strong. Many firms focused on keeping employees and growing fast.

From FY23 onward, the situation started to change. Global conditions became uncertain. By FY24, companies aimed for stability instead of fast growth.

Focus on Performance

One clear trend is the focus on performance. Even though overall hikes are lower, top performers still get better increases.

This shows that pay is now more linked to individual work, skills, and impact on the business.

Reasons Behind Lower Hikes

The drop in hikes in recent years is due to:

• Slower global IT spending
• Delays in client decisions
• Strong focus on profit margins

Also, moving the hike cycle from April to September shows that the company is adjusting based on business needs.

Conclusion

Overall, Tata Consultancy Services has moved from high salary growth to a more balanced approach.

Hikes are lower now, but strong performers are still rewarded well. This reflects a practical and steady way of managing pay in the current business environment.

As of March 31, 2026, TCS’ total workforce stood at 584,510, marking a 3.85% drop compared with 607,979 employees a year earlier.

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