The cut in employee salary hikes for 2025, which were supposed to come into effect in April, constitutes an important development for Tata Consultancy Services (TCS), India’s foremost IT services company. It has been a result of an effort to cope with global economic turmoil, problems in international trade, and turbulence in worldwide markets.
Milind Lakkad, Chief HR Officer (CHRO) of TCS, has said “it will take place much later in the fiscal year, with better definition of the economic conditions” when salary revisions were brought up in the post-earnings press meet. However, employees were assured that the quarterly variable pay remains unchanged.
The Following are the Main Highlights TCS Announced
Hikes have been deferred due to economic woes. But, variable pay remains intact – 70% of employees will get their full payouts for Q4.
Increased attrition percentage at 13.3% has a slight increase this quarter. Headcount goes up by 6433 in Q4FY25, making 607979 employees.
What did this mean to TCS Employees?
There may be worries about hikes in salaries because of the deferment. Quite frankly, though, TCS believes in being moderately optimistic this time. “We will take stock mid-year before making any salary decisions,” added Lakkad. He also mentioned that for FY26, hiring trends are expected to be similar to or exceed last fiscal’s numbers, which in itself means further stability in terms of long-term growth.
Finances Under Strain with the Market Challenge
This was reflected in a net profit drop of 1.69% as compared to last year, which was seen when TCS announced earnings for the quarter that is being said to be Q4FY25, which stands at ₹12,224 crore. Meanwhile, revenue increased by 5.29% to reach ₹64,479 crore. Thus, it reflects robustness despite the economic headwinds.