TCS Postpones Annual Increments Due to Market Slowdown

In a surprising move, Tata Consultancy Services (TCS) has decided to defer its annual salary increments, breaking away from its traditional April cycle. This decision comes at a time when clients are expressing concerns over a slowdown and uncertainties related to tariffs.

Milind Lakkad, EVP and CHRO of TCS, stated, "Due to the uncertain environment, we will decide on wage hikes during the year. We don't want to set a timeline for ourselves by saying when we will announce it. However, we assured that once we have clarity, we will announce hikes."

Moderation in Salary Increases

Last fiscal year, TCS rolled out average increments ranging between 7-9%, a noticeable decrease from the 10.5% in FY22. While TCS was among the few companies to implement hikes in April last year, many IT professionals, except for top performers, have seen their salary increases moderate to single digits.