Thu Apr 10 08:50:00 UTC 2025: ## TCS Delays Salary Hike Decision Amidst Uncertain Business Climate

**Mumbai, India –** Tata Consultancy Services (TCS), India’s largest IT services company, announced today that it will delay its decision on employee salary increases for the current fiscal year due to global economic uncertainty. The announcement came during a post-Q4 earnings press conference, where Chief HR Officer Milind Lakkad cited the uncertain business environment as the reason for the postponement.

While reports suggest a potential salary hike between 4% and 8% – the lowest in four years – TCS has not yet confirmed specific figures or timelines. This contrasts with previous years’ increases of 10.5% in FY22, 6-9% in FY23, and 7-9% in FY24.

The announcement follows a mixed Q4 FY25 performance. While TCS reported a slight year-on-year decline in net profit (1.68% to Rs 12,224 crore), its full-year net profit showed a 5.76% increase to Rs 48,553 crore. The company also achieved a record total contract value (TCV) of $12.2 billion for the quarter.

CFO Samir Seksaria indicated that the company anticipates a potential impact on operating leverage due to utilization rates, but also expressed confidence in leveraging the current uncertainty for cost optimization. Despite economic headwinds, TCS plans to maintain its hiring momentum, aiming for a similar or higher number of new employees in FY26 compared to the 42,000 hired in FY25. The company’s attrition rate currently stands at 13.3%. The overall guidance for FY26 remains at 26-28%.

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