TCS Freezes Salary Increments Amid Industry-Wide Slowdown, Confirms CHRO

TCS Puts Employee Salary Hikes on Hold, Confirms CHRO Mumbai, India — April 2025: In a significant development, Tata Consultancy Services (TCS), India’s largest IT services company, has officially confirmed that it is putting employee salary hikes on hold. The announcement was made by the company’s Chief Human Resources Officer (CHRO), leading to widespread discussions within the tech industry and among employees. Salary Increments Deferred Amid Market Uncertainty Speaking after the company’s recent quarterly earnings announcement, TCS CHRO "Milind Lakkad" confirmed the decision to defer salary hikes. He stated that the move comes in response to current macroeconomic challenges, evolving client spending patterns, and the need to prioritize operational efficiency. “We are taking a cautious approach given the current market dynamics. The decision to delay salary hikes is part of a broader strategy to ensure long-term business sustainability,” said Lakkad. Impact on Employees This announcement affects thousands of employees across TCS’s global workforce, which exceeds "600,000"professionals. While annual salary revisions are typically rolled out in April, this year’s cycle has been deferred indefinitely. 

 Although TCS has not ruled out future hikes entirely, the uncertainty has raised concerns among employees and job seekers alike. Industry experts suggest that the decision may also influence other IT giants facing similar headwinds. Industry-Wide Trends TCS's move is reflective of a broader trend in the Indian IT industry, where companies are adopting a conservative stance on compensation due to muted client demand, project delays, and global economic instability. Other major IT firms like Infosys and Wipro have also hinted at tighter budgets and cost optimization measures. The hiring slowdown in the sector has also contributed to a more cautious compensation approach. Many firms are focusing on internal talent mobility, automation, and increasing productivity per employee rather than aggressive hiring or wage increases. What This Means for the Future Analysts believe that the current pause in salary hikes is a temporary measure. As the global economy stabilizes and client confidence returns, compensation trends are expected to improve. For now, companies like TCS are prioritizing stability, client delivery, and profitability over employee cost increases. Employee Morale and Retention While the move is seen as financially prudent, it may impact employee morale and retention. To mitigate this, TCS is reportedly investing in employee engagement, upskilling initiatives, and internal career development programs. “We are committed to supporting our employees with opportunities to grow and learn, even as we navigate temporary challenges,” Lakkad added.