TCS salary hike: What increase can employees expect in 2025?
What's the story
India's top IT services firm Tata Consultancy Services (TCS) is gearing up to roll out its annual salary hikes for FY25 in March. The revised salaries will be credited from April onwards, The Economic Times reported. The expected pay hikes are likely to be between 4-8%. This comes amid a trend of declining annual salary hikes at leading IT firms over the past few years.
Policy impact
TCS links salary hikes to return-to-office compliance
TCS has tied salary hikes and variable payouts to employees' compliance with its return-to-office (RTO) policy. The company made office attendance mandatory in early 2024, and those who followed suit are more likely to get higher increments. A TCS employee said, "We have been informed that the hikes will be around 4-8%. Business units that performed well typically get better hikes, but overall, the increments have not been very high."
Pay distribution
TCS's variable pay structure and employee perceptions
TCS recently disbursed its quarterly variable pay (QVP) for the October-December period in February. While many junior and mid-level employees got 100% of their variable pay, senior staff received lower payouts ranging between 20-40%. Employees at C3B and above are considered senior-level staff, and they were the ones who received lower variable pay percentages.
Industry trend
Infosys also plans salary revisions
India's second-largest IT firm Infosys has also announced plans to issue compensation revision letters by the end of March. The company is currently finalizing pay raises based on recommendations from its delivery units. Reports suggest that Infosys employees may see salary increases in the range of 5-8%. This move is in line with TCS's strategy and reflects a broader industry trend toward annual salary hikes.