TCS Rolls Out Average 5% Salary Hikes, Several Employees Report Negative Revisions After Appraisal Cycle

Tata Consultancy Services is facing criticism from several employees after rolling out an average salary hike of around 5 per cent in its latest appraisal cycle, with some workers claiming that their actual take-home salaries have fallen despite receiving increment letters. According to reports, many employees alleged that changes in compensation structures, lower variable payouts and restructuring of allowances reduced their revised compensation packages. The issue has surfaced at a time when India’s IT sector continues to struggle with weak discretionary spending, delayed client decisions and pressure on profit margins, forcing companies like TCS to manage salary payouts more tightly.

Several employees reportedly claimed that although appraisal hikes were announced, their overall annual compensation figures either barely changed or actually declined after revised salary structures were implemented.

Workers claim revised compensation dropped despite receiving appraisal hikes

According to Moneycontrol, multiple TCS employees said their revised compensation packages were lower than expected even after appraisals. One employee told Moneycontrol anonymously, “Our annual CTC had fallen by Rs 1,000-Rs 10,000 despite receiving appraisal letters.”

Another employee who reportedly belongs to the C3A grade said, “Salary actually decreased by 3000.” A third employee quoted in the report added, “Mine decreased at C band.”

Salary restructuring and lower variable payouts spark employee frustration

As per the report, several workers claimed that revised allowances, salary restructuring and lower variable pay components affected the final salary credited to employees. One of the biggest concerns raised was that gratuity was no longer reflected in the displayed cost-to-company calculations, making compensation packages appear smaller on paper.

Employees fear this could affect future salary negotiations while switching jobs because recruiters may evaluate lower visible compensation figures instead of previous salary structures.

Changes in mediclaim and HRA structure trigger backlash online

The report further said that many TCS employees were unhappy over changes made to mediclaim premiums and salary components. Some workers claimed that personal allowances were shifted into house rent allowance (HRA), changing the structure of salary payouts.

Social media reactions also reflected growing frustration among employees after the latest appraisal cycle.

Social media reacts to ‘negative revisions’ despite announced hikes

One user wrote, “Some employees even got negative revisions. Imagine attending appraisal meetings just to unlock premium sadness.”

Another social media post said, “This “5% average hike” is classic TCS smoke and mirrors. They just forced managers to shove 5% of staff into Band D so they can hand out negative revisions, gut variable pay, and quietly PIP/fire them… all while bragging about salary increases on paper. Oracle’s dirty playbook.”

Social media raises concerns over wage code changes and personal allowance calculations

Another user posted, “Also they have played with the retaining allowance which is included as per new wage code. Instead of increasing basic pay, they have introduced personal allowance as part of wages (50%), P.A. is not part of wages as per new wage code.”

One more user alleged, “TCS gave -5% Salary decrement to my friend”.

Company had earlier highlighted annual hikes and double-digit increments

The latest criticism comes only months after TCS announced annual salary hikes averaging between 4.5 per cent and 7 per cent, with double-digit hikes for top performers in India.

In its annual report released on May 16, TCS said, “The average annual increase for junior and mid-level employees was in the range of 4.5 – 7.0 percent, with top performers receiving double-digit increments in India.”

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