India's largest IT services company Tata Consultancy Services has rolled out annual salary increments across all grades effective April 1, with high-performing employees receiving double-digit increases, the company has announced. This comes just months after a tumultous layoff phase within the organisation that claimed to have laid off almost 12,000 employees over the course of last year.
The salary hike announcement comes as TCS focuses on building an AI-ready workforce amid the technology sector's rapid transformation.
Sudeep Kunnumal, Chief HR Officer, told Business Standard, that the company announced annual increments to all eligible employees across grades effective April 1 with top performers getting a double-digit increase.
The exact quantum of hikes for other employees could not be ascertained.
Kunnumal added that building an AI-first culture and equipping people with AI-ready skills remained a key priority in FY26 and will continue into FY27, as the company aligns closely with customers' evolving needs.
The company has 270,000 employees with higher proficiency in AI and machine learning.
Hiring focus on AI, Cloud, Cybersecurity
TCS will continue to hire freshers and experienced people with a focus on AI, data, enterprise solutions, software engineering, cloud, cybersecurity, and digital engineering, Kunnumal said. In FY26, the company also hired over 750 employees with deep advisory and consulting expertise.
In FY25, TCS had delayed salary hikes to September 2025, a delay of five months, with increases ranging from 4.5 percent to 7 percent, while high performers continued to get double-digit raises.
The timely April 1 implementation this year signals improved business confidence as the IT major reported strong quarterly results.
Headcount falls despite pay raises
The total headcount of the company at the end of the fiscal year stood at 584,519, down from 607,979 at the end of FY25. However, the company added 2,356 people in Q4 FY26 on a quarter-on-quarter basis.
