Tata Consultancy Services (TCS) has decided to defer salary hikes for its employees in 2025. The ‘unpredictable business environment’ has been given as the reason for delay. Instead of a fixed schedule, TCS will assess the possibility of salary increases based on how business conditions evolve throughout the financial year.
The decision was announced during the company’s post-fourth quarter earnings press conference in Mumbai on 10 April. The move reflects a broader trend in the Indian IT sector, where companies are exercising caution amid slowdowns in key markets such as North America.
Client decision-making continues to be delayed, and cost optimisation remains a priority, impacting revenue visibility.
Despite the pause on wage hikes, TCS has maintained a steady hiring momentum. The company ended FY25 with a total workforce of 6,07,979, adding 6,433 employees during the year. In the fourth quarter alone, 625 new hires were onboarded. Additionally, the company honoured its trainee onboarding commitment by bringing in 42,000 freshers during the fiscal year. Fresher hiring is expected to stay consistent or rise slightly in FY26.
TCS also reported a slight increase in attrition for the March quarter, rising to 13.3 from 13 per cent in the previous quarter. However, internal data suggests a decline in quarterly annualised attrition, indicating improving employee-retention trends.
As global economic uncertainty persists, TCS’ flexible approach to salary revisions, continued focus on talent acquisition, and active management of attrition underscore its strategy to remain competitive while adapting to market dynamics.
