Tata Consultancy Services has started rolling out annual salary hikes for employees in India, with average increments ranging between 6 and 8 per cent, according to people familiar with the development. TCS employees in the top-rated A+ performance category have reportedly received hikes of more than 10 per cent, while even lower-rated employees have received smaller salary increases. The move marks a return to TCS’ regular appraisal cycle after last year’s delay caused by global macroeconomic uncertainty. In 2025, the company had postponed increments to September, but earlier this year it announced that salary hikes would once again begin from April. The latest revision is being closely watched because TCS remains India’s largest IT services company with more than 5.84 lakh employees worldwide.
Top performers receive double-digit hikes while overseas employees get smaller increases
Inside TCS, employees are divided into performance bands such as A+, A, B and C. Sources said employees in the highest-rated A+ category received salary hikes exceeding 10 per cent because of strong performance ratings, as per reports. Employees who received the lowest ratings reportedly still got hikes of around 2 to 3 per cent. Overseas employees at TCS received salary increases ranging between 2 and 4 per cent.
In its latest annual report released last week, TCS stated that junior and mid-level employees in India received average annual salary increases between 4.5 and 7 per cent during the financial year 2026. The company also confirmed that top performers received double-digit increments.
According to reports, the annual report added, “However, during the course of the year, the total increase is in the range of 5-8 per cent, after accounting for promotions and other event-based compensation revisions. Junior and mid-level employees outside India received a wage increase between 1-6 per cent.”
New salary structure linked to labour code changes and employee salary protection
TCS also announced that it has completed restructuring compensation for all India-based employees in line with the country’s new labour codes. In an official statement, the company said, “In line with the announcement made during our Q4 earnings, we have rolled out annual increments to eligible employees. Additionally, we have completed the restructuring of compensation for all our India-based employees to align with the new labour codes.”
Reports say that the company further explained that the revised salary structure was designed around three major principles. These include compliance with new labour regulations, standardisation of wage structures across the India workforce, and protection of employees’ take-home salary while also allowing flexibility for tax efficiency. TCS added, “TCS has consistently maintained a track record of awarding annual increments to its associates year-on-year, reinforcing its commitment to employee growth and long-term value creation.”
Delay last year had raised concerns among employees amid uncertain global business environment
TCS Chief Human Resources Officer Sudeep Kunnumal had earlier said in April that salary hikes this year would remain similar to last year’s levels.
The return of regular salary hikes comes after concerns among employees last year when increments were delayed because of uncertainty in the global technology and business environment. With TCS now restarting its normal wage revision cycle, employees across the company are closely tracking future promotions, compensation revisions and growth opportunities.
Khalid Qasid is a media enthusiast with a strong interest in documentary filmmaking. He holds a Master’s degree in Convergent Journalism from AJK MCRC. He has also written extensively on esports at Sportsdunia. Currently, he covers world and general news at NewsX Digital.
