Tata Consultancy Services (TCS), India’s largest IT services exporter, has officially rolled out its annual salary increments for the current fiscal year.
TCS announced an average hike of 5% to 7% for the majority of its offshore workforce.
The move met a mix of relief and frustration due to a revised CTC structure that many employees find complex and confusing.
The TCS Hike Breakdown: Rewards for Top Performers
In an internal communication, TCS confirmed that salary increments would be effective from April 1.
While the average employee is seeing a single-digit bump, high performers—classified under the “Top” rating category—are reportedly receiving double-digit increases ranging from 12% to 15%.
For junior to mid-level employees, particularly those in the Rs 15–35 lakh salary bracket, the raises vary significantly based on location.
Onshore employees are receiving modest hikes of 2% to 4%, while offshore staff in India are seeing a slightly higher range.
This comes as the company prioritizes “AI-first” skills, rewarding those who have completed advanced certifications in generative AI and machine learning.
Read also: Why Deloitte is Eyeing Tier-II Cities for Its Next Growth Phase
CTC Revision Triggers Widespread Confusion
The primary source of anxiety within the TCS ranks is not the quantum of the hike, but a fundamental change in how the salary is structured.
The revised CTC includes a shift in the “Performance Pay” and “Quarterly Variable Pay” components.
Employees have taken to internal forums and social media to express confusion over how the new structure affects their net “take-home” pay.
Some claim these changes make it harder to predict their monthly earnings.
“The letters look good on paper, but the actual credit in the bank account doesn’t seem to reflect a 5% jump,” one mid-level developer shared on an anonymous platform.
HR experts suggest that by restructuring the CTC, TCS may be attempting to link a larger portion of salary to productivity metrics.
The Broader Industry Context
The 5% average hike dips slightly compared to previous years but remains competitive in a cooling IT market.
With a total headcount exceeding 580,000, the financial implications for TCS are massive.
The firm continues to hire aggressively for specialized roles despite a year-on-year reduction in total staff.
This signals that the war for niche technical talent remains fierce while general raises may be subdued.
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About the Author
Sahiba Sharma
Contributing Writer