TCS Salary Hike 2025: India’s largest IT services company, Tata Consultancy Services (TCS), has announced a temporary deferral of salary hikes for FY25 due to global macroeconomic uncertainty and ongoing trade tensions, particularly the US tariff war. This strategic decision comes despite steady performance in Q4FY25 and a robust hiring pipeline for the next fiscal year.
TCS Salary Hike 2025: Key Highlights
- Salary hikes deferred, not canceled – decision will be revisited later in FY25.
- 110,000 employees received promotions in Q4FY25, nearly 1 in every 6 staff.
- Q4FY25 profit dropped by 1.68% YoY, totaling ₹12,224 crore.
- Revenue for Q4FY25 increased by 5.29% YoY, touching ₹64,479 crore.
- Attrition stands at 13.3%, marginally up from the previous quarter.
- Campus hiring for FY26 remains intact with a goal of 42,000 recruits.
- New leadership: Aarthi Subramanian appointed as COO and Mangesh Sathe as Chief Strategy Officer.
TCS Salary Hike 2025: Why the Delay in Salary Hikes?
In a press conference on April 10, 2025, Milind Lakkad, Chief HR Officer of TCS, explained that the wage hikes, traditionally rolled out in April, will now be reassessed based on improving market conditions.
“We will decide during the year when to make the wage hike,” he stated.
The deferment reflects a cautious stance similar to the early pandemic period when global uncertainties forced IT giants to rethink their compensation structures.
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TCS Q4FY25 Financial Overview
| Metric | Q4 FY24 | Q4 FY25 | Change |
|---|---|---|---|
| Revenue | ₹61,237 crore | ₹64,479 crore | +5.29% |
| Net Profit | ₹12,434 crore | ₹12,224 crore | -1.68% |
| Attrition | 13.0% | 13.3% | +0.3% |
| Hiring (Q4 only) | — | +625 employees | — |
| Total Headcount (FY25) | — | 607,979 | +6,433 YoY |
TCS Salary Hike 2025: Promotions and Performance-Based Rewards
Despite pausing salary increments, TCS has made merit-based promotions a key highlight of the quarter. 110,000 employees were promoted, marking the company’s ongoing commitment to internal career advancement.
Additionally, quarterly variable pay will continue, with 70% of the workforce receiving 100% payouts, while the rest will be performance-based.
Leadership Restructuring
TCS has appointed Aarthi Subramanian as the new Chief Operating Officer. She previously led digital initiatives at Tata Sons and brings strategic expertise to steer global operations.
Mangesh Sathe, formerly with Tata Strategic Management Group, will lead the consulting and M&A initiatives as the newly appointed Chief Strategy Officer.
These leadership moves signal TCS’s intent to diversify talent and future-proof operations.
Hiring Plans Remain Strong for FY26
TCS confirmed it will onboard approximately 42,000 engineers from campuses for FY26 – a number in line with the FY25 batch. This provides a promising signal for fresh graduates concerned about hiring slowdowns in the tech industry.
FAQs
Q1: Is TCS giving salary hikes in FY25?
No, TCS has deferred the salary hikes due to global economic uncertainty. However, this does not imply a cancellation. The review will occur later in the financial year.
Q2: Will promotions continue despite the hike freeze?
Yes. Over 1.1 lakh employees were promoted in Q4 FY25 alone.
Q3: What’s TCS’s hiring outlook for 2025-26?
TCS plans to hire around 42,000 fresh graduates, indicating continued demand for entry-level engineers.
Q4: Who is the new COO at TCS?
Aarthi Subramanian, former Chief Digital Officer at Tata Sons, is the new COO, effective from May 1, 2025.
Q5: What are TCS’s Q4FY25 earnings?
The firm posted ₹12,224 crore in net profit and ₹64,479 crore in revenue for Q4 FY25.
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Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research or consult a professional before making any investment decisions.
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