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‘Considering the uncertain business environment, we will decide during the year when to make that happen,’ says TCS chief HR officer Milind Lakkad on wage hike in 2025.
TCS Salary Hike.
TCS chief HR officer Milind Lakkad on Thursday said the company will decide when to give the salary hike to employees this year considering the “uncertain business environment”. He said this during a post-Q4 earnings press conference.
“Considering the uncertain business environment, we will decide during the year when to make that happen,” Lakkad said during the post-Q4 earnings press conference.
The IT sector has been facing global headwinds due to the ongoing trade war and a likely US recession.
According to reports, Tata Consultancy Services (TCS) is expected to roll out lower salary hikes this year between 4 per cent and 8 per cent. This hike will be 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 country’s largest IT services company on April 10 reported a 1.68 per cent decline YoY in its net profit to Rs 12,224 crore for the fourth quarter ended March 31, 2025 (Q4 FY25). However, during the full financial year 2024-25, TCS’ net profit rose 5.76 per cent to Rs 48,553 crore.
The company, however, posted a record total contract value (TCV) of $12.2 billion for the quarter, with a healthy book-to-bill ratio of 1.6.
Its CFO Samir Seksaria during the press conference said, “For FY26, our overall guidance range still remains at 26-28 per cent. And given the current environment, there might be some impact on the operating leverage maybe because of utilisation taking an impact… Also, uncertainty provides an opportunity and we will use this opportunity from a cost-optimisation perspective as well.”
TCS Hiring In FY25, FY26
TCS hired a total of 42,000 employees this fiscal year (FY25) as planned, according to a statement on Thursday.
During the press conference, Milind Lakkad said the company will hire the “similar number of employees or higher” in the ongoing financial year 2025-26.
The company’s total workforce stood at 6,07,979 at the end of March 2025, an addition of 625 persons as compared with 607,354 as of December 31, 2024.
Its IT services attrition rate (last twelve month basis) stood at 13.3 per cent during the March 2025 quarter, as against 13 per cent in the previous quarter.
