Tata Consultancy Services (TCS), India’s largest IT services exporter, has officially announced the implementation of annual salary increments for its employees across all grades, effective April 1, 2026. The move marks a return to the company’s traditional appraisal timeline following a significant delay in the previous fiscal year. While the exact average percentage for the raises was not specified, the company confirmed that high-performing employees are eligible for double-digit increases.

Return to Traditional Appraisal Cycle

The decision to roll out hikes in April signals a stabilization in the company’s compensation planning. In the 2024-25 fiscal cycle, TCS had deferred salary revisions by five months, only implementing them in September 2025. During that period, the majority of the workforce received increments ranging between 4.5% and 7%. By reverting to the April 1 schedule, the IT major aims to provide greater predictability for its global workforce of over 584,000 associates. TCS Layoffs: 16% of Top Executives at Tata Consultancy Services Depart As ‘Lifetime Employment’ Era Ends.

Focus on AI and Future-Ready Skills

Alongside the compensation updates, TCS emphasized a strategic shift toward an "AI-first" culture. Chief Human Resources Officer Sudeep Kunnumal stated that equipping the workforce with artificial intelligence and machine learning skills remains a top priority for the 2026-27 financial year. Currently, approximately 270,000 employees have reached high levels of proficiency in AI and ML. The company noted that future hiring and promotions will continue to be closely tied to skill depth in areas such as cloud computing, cybersecurity, and digital engineering.

Workforce Trends and Attrition

The headcount at the end of the fourth quarter (Q4 FY26) stood at 584,519. While this represents a year-on-year decline from the 607,979 employees reported at the end of FY25, the company saw a sequential increase of 2,356 employees during the March quarter. This uptick in hiring comes as voluntary attrition rose marginally to 13.7%, compared to 13.5% in the preceding quarter. The company continues to maintain a diverse workforce, with women making up 35.2% of the total employee base. TCS Employee Salary Drop: IT Professional Claims Monthly Income Fell From INR 25,000 to INR 22,800 After 5.5 Years at Tata Consultancy Services.

Strong Financial Backing

The salary increments are supported by a robust financial performance in the final quarter of the fiscal year. TCS reported a 12.2% year-on-year increase in consolidated net profit, reaching ₹13,718 crore. Revenue also grew by 9.6% to ₹70,698 crore. These figures exceeded many market expectations, providing the necessary capital to reward employees and announce a final dividend of ₹31 per share for shareholders. CEO K Krithivasan attributed the growth to sustained customer conviction in technology investments despite ongoing macroeconomic headwinds.

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(The above story first appeared on LatestLY on Apr 10, 2026 04:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).