TCS Resumes Regular Salary Hikes, Offers Double-Digit Raises to Top Performers Amid Workforce Reduction

Tata Consultancy Services Resumes Regular Salary Hike Cycle Amid Workforce Reduction

Tata Consultancy Services (TCS), India's largest software services provider, has reinstated its regular salary hike cycle after a delay last year. The IT giant ended the fiscal year FY26 with 584,519 employees, a decline of 23,460 employees compared to the previous year. This reduction equates to a 2% decline in its workforce, resulting in nearly 12,000 job losses.

Despite the workforce reduction, TCS has announced an annual salary hike for its eligible employees across all grades, effective April 1, 2026. This move marks a return to the company's regular appraisal cycle after last year's delay. Top performers will receive double-digit increases, while the overall average hike remains undisclosed.

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TCS had previously announced rounds of salary hikes in September 2025, with an increment rate set between 4.5% and 7% for the majority of its employees. The company had also increased salaries for its lower- and middle-level employees, with top performers receiving up to 10% pay hikes.

In FY26, TCS focused its recruitment efforts on hiring individuals with expertise in Artificial Intelligence, data, Enterprise Solutions, software engineering, cloud, cybersecurity, and digital engineering. The company has also extended 25,000 job offers to fresh graduates for the current financial year. TCS Chief Executive and Managing Director K Krithivasan confirmed the numbers and expressed a conditional path to more hiring, stating that "clarity on demand will lead to more hiring."

TCS continues to rely on its existing workforce and has stepped up investments in talent development initiatives. Over 270,000 associates now possess advanced proficiencies in AI and machine learning.

The IT giant announced its results for the fourth quarter of the financial year on Thursday, April 9, 2026. TCS beat expectations, with revenue jumping 9.6% year-on-year to ₹70,698 crore for the quarter ended March 2026. The company's profit rose 12% YoY to ₹13,718 crore.

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