New Delhi, July 11: India’s largest IT company, Tata Consultancy Services (TCS), has not yet decided on employee salary hikes for the ongoing financial year. Addressing the media after the Q1FY26 results on Thursday, 10 July 2025, 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.” The delay in TCS salary hike comes amid a cautious business outlook, even though the company posted a 6% year-on-year rise in net profit to INR 12,760 crore in Q1FY26.

TCS had previously postponed salary hikes in the last quarter of FY25, citing an “uncertain environment.” Back then, Lakkad had said that wage hikes could happen anytime during the year, depending on business performance and market dynamics. The same cautious sentiment continues this quarter. TCS Q1 Results: Tata Consultancy Services Logs 6% Net Profit Growth at INR 12,760 Crore in Q1, Declares Interim Dividend of INR 11 per Share.

When Will TCS Announce Increments to Employees?

As of now, there is no fixed timeline. “Because of the uncertain environment, we will decide during the year on wage hikes. It can be at any time, depending on business,” Lakkad reiterated at the Q1FY26 earnings press conference. TCS Deployment Policy: Tata Consultancy Services Mandates 225 Billing Days per Year, Limits Bench Time to 35 Days.

Meanwhile, TCS is facing rising attrition. The company reported an attrition rate of 13.8% in Q1, up from 13.3% in the previous quarter. This is above the firm’s “comfort level” of 13%, according to Lakkad. Despite this, TCS expanded its workforce, adding over 5,000 employees between April and June 2025, bringing total headcount to 613,069.

India’s IT industry continues to grow steadily. As per IBEF data, the sector is projected to contribute USD 380 billion to India’s GDP by 2026, creating nearly 14 million jobs, driven by cloud computing, digital transformation, and global expansion of Indian firms.

(The above story first appeared on LatestLY on Jul 11, 2025 02:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).