Tata Consultancy Services (TCS) has decided to defer its annual salary hikes for 2025, citing an uncertain and volatile global business environment. The announcement came during the company’s post-Q4 earnings press conference held in Mumbai on April 10.
Chief Human Resources Officer Milind Lakkad clarified that the company has not ruled out wage hikes entirely, but will decide the timing and extent of the raises during the financial year based on evolving business conditions.
“Because of the uncertain environment, we will decide during the year on wage hikes. It can be at any time, depending on business,” Lakkad said.
IT Sector Feels the Heat
The move reflects growing caution in India’s IT sector, as companies face prolonged decision-making cycles and cost-control measures in key markets like North America. While TCS posted a 5.3% YoY rise in consolidated revenue to ₹64,479 crore, net profit declined by 1.69% to ₹12,224 crore, missing analysts’ expectations.
Despite the conservative stance on compensation, TCS has not slowed down its hiring engine. The company added a net 6,433 employees in FY25, closing the year with a total headcount of 6,07,979. In Q4 alone, 625 employees were added.
Freshers Still in Focus
TCS remained committed to its fresher onboarding plans, having hired 42,000 trainees in FY25. Lakkad indicated that campus hiring would remain steady or increase slightly in FY26, providing a positive signal to aspiring tech graduates.
“Fresher hiring will be similar or may be higher in FY26,” he said.
Attrition and Retention Trends
TCS’s attrition rate rose marginally to 13.3% in Q4 FY25, up from 13% in the previous quarter. However, Lakkad noted that quarterly annualised attrition had dropped by 130 basis points, signaling improved short-term retention.
As major tech firms worldwide tighten budgets and rethink compensation structures, TCS’s strategy appears to balance cost management with sustained talent acquisition and employee retention. By keeping its options open, the IT giant aims to navigate current market headwinds while maintaining its long-term competitive edge.
Employees may need to wait for clarity on raises, but TCS’s continued hiring and retention focus offer reassurance in a challenging economic climate.
Aaj Ki Janta 
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