TCS salary hike update: When will Tata Consultancy Services roll out increments to employees? Chief HR says...

One of India’s biggest IT companies, Tata Consultancy Services (TCS), has not yet decided whether it will increase employee salaries this month. On July 10, during a press conference, TCS Executive Vice President and Chief Human Resources Officer (CHRO), Milind Lakkad, said, “With respect to wage hikes, we have not made any decisions so far.”

This statement came after the company announced its Q1 results for the financial year 2025-26, which showed a 6% rise in net profit to Rs 12,760 crore for the April-June quarter. Compared to the same quarter last year, the profit grew by 1.3%.

TCS had earlier delayed wage hikes, blaming the “uncertain environment” seen in the last quarter of FY 2024-25. Lakkad added that salary hikes could still happen later this year, depending on how the business performs.

Meanwhile, the company’s attrition rate — the percentage of employees leaving the company — rose to 13.8% at the end of Q1 2025-26. This is slightly higher than the 13.3% recorded in the previous quarter and is above the company’s comfort level of 13%. “We are making efforts to bring it down,” Lakkad said. The current attrition rate is the highest TCS has seen in two years.

Despite the rise in attrition, TCS expanded its workforce in Q1, hiring over 5,000 employees. The total employee count now stands at 613,069, up from 607,979.

The IT sector continues to be one of the largest job creators and revenue generators in India. According to the Indian Brand Equity Foundation (IBEF), the Indian IT industry reached $245 billion in FY23, growing from $227 billion in FY22. The software product industry is projected to hit $100 billion by late 2025.