TCS salary hike: When will IT major roll out increments to employees? What chief HR officer says post Q1 results | Company Business News

TCS salary hike: India’s largest IT company, Tata Consultancy Services (TCS), has not yet taken a decision on the pay hike for employees this year, a top executive said. The IT major’s Executive Vice President and Chief Human Resources Officer (CHRO), Milind Lakkad, during a press conference on Thursday, 10 July 2025, said the company has not made any decisions so far on the potential salary increase. 

“With respect to wage hikes, we have not made any decisions so far,” Milind Lakkad told reporters on Thursday.

TCS declared its Q1 results on July 10. The IT major reported a 6 per cent rise in its consolidated net profits to ₹12,760 crore for the April-June quarter of the financial year 2025-26, compared year-on-year (YoY), with ₹12,040 crore in the same quarter a year ago. Its consolidated revenue from operations also rose 1.3 per cent to ₹63,437 crore in the first quarter, compared to ₹62,613 crore in the same quarter of the previous financial year.

The company had delayed its wage hike, attributing it to the “uncertain environment” in the fourth quarter of the financial year 2024-25. Lakkad, at the Q4 press conference, said the wage hikes could occur anytime during the year, depending on the company’s business.

“Because of the uncertain environment, we will decide during the year on wage hikes. It can be at any time, depending on business,” he had told the media after the Q4 results announcement. 

TCS Attrition Rate

According to the Q1 results disclosure, the attrition rate of TCS employees increased to 13.8 per cent on a last twelve-month (LTM) basis as of the end of the April to June quarter of FY2025-26, up from 13.3 per cent at the end of the fourth quarter of the 2024-25 fiscal.

The attrition rate for the first quarter of the 2025-26 fiscal year witnessed a marginal increase compared to the same quarter a year ago.

As TCS attrition hits a two-year high, Milind Lakkad said that attrition was more than its comfort level of 13 per cent. “We are making efforts to bring it down,” the chief HR officer said at the press conference. 

Even though TCS witnessed a rise in attrition rate, the company expanded its workforce, hiring more than 5,000 employees during the April to June quarter of the 2025-26 fiscal year. According to Mint’s report after Q1 results 2025, the total employee headcount in India’s largest IT company was at 613,069, up from 607,979 in the previous quarter.

India’s IT Sector Growth

The IT services sector is one of the biggest employers and revenue earners in the Indian economy, generating thousands of jobs. 

According to the Indian Brand Equity Foundation (IBEF) data, the Indian IT industry reached $227 billion in the financial year ended 2021-22, witnessing a 15.5 per cent year-on-year (YoY) growth. It was estimated to have reached $245 billion in FY23.

The industry report released earlier this year highlights that the Indian software product industry is expected to reach $100 billion by the end of 2025, as Indian companies are focusing on investments abroad to expand their global footprint and enhance their global delivery centres.

With the increase in use of cloud technology, the IT industry is expected to create 14 million jobs by the end of 2026 and contribute $380 billion to the nation’s gross domestic product.