BAD News for TCS employees! Ratan Tata's firm to roll out salary hikes lowest in four years; know what is expected increment

Late Ratan Tata's Tata Consultancy Services (TCS), an IT giant, is set to announce annual salary hikes for its staff for the financial year 2025-26. However, the expected hikes are likely to be lowest in the last four years. 

As per a report by The Economic Times, TCS salary hikes are expected to witness average increments ranging between 4 per cent to 8 per cent. 

In February, the IT firm released its quarterly variable pay for the October-December period for eligible employees. As per the revised pay scheme, many of the firm's junior and mid-level employees will receive 100 per cent of their variable pay, while the senior employees are eligible to receive 20-40 per cent. 

Pertinent to note that the salary hikes provided by TCS are linked to the compliance of the firm's return-to-office (RT) policy which was introduced in early 2024, making five-day office workweek compulsory for employees. 

Lowest salary hike in four years?

In FY 2024-25, the tech giant gave its employees an average hike falling beween 7-9 per cent, in FY 2023-24, it was 6-9 per cent and 10.5 per cent in FY 2022-23. However, as per media reports, this year's increment is expected to be the lowest in the last four years.