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The upcoming salary hike for TCS employees in the range of 4-8 per cent is the lowest in the past four years. TCS had rolled out a salary increment of 10.5% in FY22, 6-9% in FY23, and 7-9% in FY24.
Infosys has also reportedly announced lower salary hikes between 5 per cent and 8 per cent this year, as compared with the past few years.
TCS, Infosys Salary Hikes 2025: After witnessing a boom during the COVID-19 pandemic, the IT sector is now facing headwinds amid global uncertainties. According to reports, India’s largest IT services company TCS is set to roll out lower salary hikes this year between 4 per cent and 8 per cent, while the country’s second largest IT firm Infosys will also give increment between 5 per cent and 8 per cent.
Tata Consultancy Services (TCS) will also announce lower quarterly variable pay for the October-December 2024. While junior- and mid-level employees are set to receive full 100 per cent variable pay, the senior employees might see the variable pay between 20 per cent and 40 per cent, according to a Moneycontrol report.
How Much Salary Hike Will TCS Employees Receive?
The upcoming salary hike for TCS employees in the range of 4-8 per cent is the lowest in the past four years. TCS had rolled out a salary increment of 10.5 per cent in FY22, 6-9 per cent in FY23, and 7-9 per cent in FY24.
The lower salary hike this year comes even as the company reduced its workforce in the latest December 2024 quarter by 5,370 employees to 607,354 employees. Its attrition rate also increased to 13 per cent in Q3 FY24, compared with 12.3 per cent a year ago.
Tata Consultancy Services (TCS) reported a 5.5 per cent rise year-on-year (YoY) in its net profit to Rs 12,380 crore for the latest Q3 FY25 quarter, beating market estimates. Its revenue during October-December 2024 increased 5.6 per cent to Rs 63,973 crore.
How Much Salary Hike Will Infosys Employees Receive?
Infosys has also reportedly announced lower salary hikes between 5 per cent and 8 per cent this year, as compared with the past few years. However, exceptional performers are expected to receive a salary hike of 10-12 per cent this year.
Salary hikes have been rolled out to employees in band JL6 and below, effective from April 1.
On January 16, the services giant Infosys said it will roll out 6-8 percent annual salary hikes for its employees in India, starting January 2025. The hikes were planned in phases, with the second phase set to begin in April 2025.
Infosys employs over 3.23 lakh professionals and last implemented salary hikes in November 2023.
“Broadly, the comp (annual salary increment) that we are expecting is 6-8% in India, and the overseas comps will be in line with the earlier comp reviews,” Infosys’ Chief Financial Officer Jayesh Sanghrajka said while addressing the press after declaring the third quarter results ending December 31, 2024 (Q3FY25).
In February, Infosys sacked over 300 trainees at its Mysuru campus as they failed assessment test. This is about half of the trainees onboarded in October 2024.
Last week, over 100 of these trainees approached the Prime Ministers Office seeking its intervention to restore their employment. In a letter to the PMO, Infosys’ sacked employees also urged the PMO to take measures to prevent such incidents from happening in the future.
Infosys reported a net profit of Rs 6,806 crore for the latest October-December 2024 quarter, marking an 11.4% year-on-year (YoY) increase compared to Rs 6,106 crore in Q3FY24. On a sequential basis, profit rose 4.6% from Rs 6,506 crore in Q2FY25. The results were above the market estimates.
It also raised its CC revenue growth guidance for FY25 to 4.5-5% for the third quarter in a row, as against its previous guidance of 3.75-4.5%.
