TCS Annual Increment: The country’s largest IT service company Tata Consultancy Services (TCS) is planning to give annual salary hike to its lakhs of employees in March. This salary hike will be implemented from April 2025.
According to media reports, this increment is expected to be between 4% to 8%. Earlier during the Covid-19 pandemic, salary hike was happening in double digits. But now it has fallen to single digit.
The pace of salary hike has slowed down than before
According to the news published in ET, due to global economic challenges, the pace of salary hike in the IT sector has slowed down. Earlier, during the time of Covid-19, IT employees were getting good hikes. According to the report, employees working in business verticals which have performed well will get good salary hikes. But the overall salary hike will not be very encouraging.
Plan to hire 40000 new freshers
In the financial year 2022 (FY22), TCS gave an average salary hike of 10.5% to its employees. After this, in the year 2024 (FY24) it came down to between 7-9%. Now in the year 2025, the salary hike is expected to decrease further to between 4-8%. As of December 2024, a total of 6,07,354 employees are working in TCS. The company is planning to hire 40,000 new freshers by March 2025. The company’s recruitment target for the financial year 2026 (FY26) will be even higher.
Bonus linked to return-to-office policy
TCS has linked the salary hike and bonus of its employees to the return-to-office (RTO) policy. In early 2024, the company had announced that employees would have to come to the office regularly. Employees who follow this policy can get benefits in salary hike and bonus. TCS reported a net profit of Rs 12,380 crore in the third quarter (October-December 2024) of the financial year 2024-25, showing a growth of 5.5% year-on-year (YoY).
During this period, the company’s revenue hike was 5.6% and it reached Rs 63,973 crore. On the basis of constant currency, TCS’s income increased by 4.5%. The country’s second largest IT company Infosys is also preparing to give salary hike to its employees. The company can issue increment letter by the end of February. The average salary hike in Infosys is likely to be between 5% to 8%. Infosys currently has more than 3.23 lakh employees.
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