TCS yet to decide on salary hikes for employees amid economic uncertainty

Software service giant TCS, which released its quarter 1 results for the fiscal year 2025, is yet to decide on salary hikes for its employees as global macroeconomic uncertainties have intensified.

Tata Consultancy Services' Chief Human Resources Officer, Milind Lakkad, said, "We have not made any decision so far on wage hikes. We will let you know as soon as we do".

The CHRO added that he will share an update on the timing and quantity of the hike when the situation improves.

TCS has temporarily paused salary hikes, primarily due to the US tariff war. The company is expecting clarity on the global economic environment once more countries start signing bilateral trade deals with the US.

TCS attrition rate holds steady at 13.8% in Q1 FY26, headcount stands at 613,069

Moreover, TCS is also finding it difficult to immediately absorb the 42,000 freshers it recruited last year. However, Lakkad said the company will honour the offers, and added, "How many and when they will come will depend on the business situation".

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For the current fiscal year 2026, TCS has targeted to hire 40,000 engineering graduates until now. The targets may fluctuate depending on the business performance.

TCS added 5,090 employees during the Q1 FY26, taking the total headcount to 613,069. Attrition of the company escalated to 13.8% in the last 12-month period. Last year, the attrition of the company was 12.1 percent.

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According to the stock exchange filing, TCS's profit soared to Rs 12,760 crore during the April-June quarter--an increase of 6 percent year-on-year in fiscal year 2026. Moreover, the total revenue witnessed a marginal rise of 1.31% to Rs 63,437 crore in Q1 FY26. In the previous fiscal in Q1, TCS clocked a total income of Rs 62,613 crore.

The banking and financial services segment revenue stood at Rs 24,736 crore, followed by consumer business at Rs 10,155 crore, Communication, Media & Technology at Rs 9,436 crore, and Manufacturing at Rs 6,401 crore, respectively.

Notably, Artificial Intelligence (AI) and Data unit delivered robust growth during the June quarter of FY26. "Demand was led by AI-led transformation, SDLC/IT-Ops automation, and data-platform modernization," TCS said in its Q1 FY26 report.