TCS Salary Hike: Tech giant Tata Consultancy Services (TCS) has delayed its annual salary hikes. These salary hikes were set to roll out in April. Moreover, the company cited ongoing macroeconomic uncertainty and concerns regarding the evolving US tariff landscape.
K Krithivasan, chief executive officer (CEO), said that the company is already witnessing signs of stress in its clients’ spending patterns. He said, “there will be delays in discretionary spending if this continues.” Furthermore, Krithivasan also highlighted the project delays and slower ramp-ups as clients reassess their budgets in light of pending tariffs.
TCS had delayed salary hikes in the past also. It was five years ago, when the COVID-19 pandemic first hit. The Pandemic caused widespread disruption to global business. It also highlights the prevailing caution in the IT sector, and companies are cautious due to ongoing uncertainty among clients.
TCS Salary Hike: When Employees Will Hear The Good News?
There is no clear announced for the salary hikes. However, executives from the company announced at a press conference on Thursday that salary increases would be implemented later in the financial year, once the environment stabilizes and the company gains clearer visibility.
Milind Lakkad, the outgoing chief human resources officer (CHRO) of the company, said, “We will decide during the year when to make the wage hike.”
Although annual salary hikes are currently suspended, TCS will proceed with quarterly variable payouts. For the fourth quarter, 70% of employees will receive their full eligible variable pay. Moreover, the remaining employees will receive variable compensation based on the company’s business performance.
Financial Performance
TCS reported a net profit of Rs 12,224 crore for the fourth quarter of FY25, a 1.7% decline from ₹12,434 crore in the same quarter of FY24. However, the company’s revenue for the quarter showed growth, increasing by 5.3% year-over-year to Rs 64,479 crore.
For the entire financial year, TCS reported a net profit of Rs 48,553 crore, a 5.8% increase. Moreover, the annual revenue reached Rs 255,342 crore, showing a 6% year-over-year growth. Notably, the company’s revenue surpassed a milestone of $30 billion.
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