TCS Salary Hike: Good News for Nearly 6 Lakh TCS Employees; Major Update on Salary Increases

There is a piece of relieving news for employees in the IT sector. Tata Consultancy Services (TCS) has announced that it will implement annual salary increments for employees across all grades, effective April 1st. However, the specific magnitude of this year’s hike has not yet been disclosed. Notably, while the company is raising salaries on one hand, it has also witnessed a year-on-year decline in its total headcount on the other.

Sudeep Kunnumal, the company’s Chief HR Officer, stated that TCS remains committed to investing in its employees, and this salary increment is a step in that very direction. He explained that the company is focused on building a future-ready workforce, a strategy that encompasses both experienced professionals and campus hires.

However, the biggest question this time around remains: exactly how much will salaries increase? The company has not yet clarified the specific percentage of the hike.

Last year (FY25), TCS had delayed its salary increments by approximately five months, eventually implementing them starting in September 2025.

At that time, average increments ranged from 4.5% to 7%, while top-performing employees received double-digit hikes.

This time, the company has decided to implement the increments on schedule—that is, starting in April—which is being viewed as a positive sign for the employees.

However, there is another side to the story. The company’s total headcount stood at 584,519 at the end of FY26, down from 607,979 at the end of FY25. This indicates a year-on-year decline in the total number of employees.

Nevertheless, some improvement has been observed on a quarterly basis. At the end of Q4 FY26, the company added 2,356 new employees. This suggests that the company is gradually ramping up its hiring efforts once again.

TCS’s focus is now firmly fixed on rapidly evolving technologies, particularly AI and Machine Learning. The company stated that it has over 270,000 employees who possess a strong command of AI and ML.

According to Sudeep Kunnumal, the company will prioritize an “AI-first” culture during FY26 and FY27, equipping its workforce with AI-ready skills. The objective is to align with the evolving needs of its clients.

Overall, this move by TCS demonstrates that, on one hand, the company is raising salaries to retain and motivate its employees, while on the other, it is reshaping its workforce to adapt to technological shifts.

All eyes are now on the extent of the salary increments the company will implement, and the degree of growth its focus on AI will generate in the future.