While continuing investments in AI skills and workforce, the Indian IT major, TCS appears to have rolled out increments across grades after last year’s delay.
TCS Reinstating Traditional Appraisal Cycle
The Indian technology giant, Tata Consultancy Services (TCS) has resumed its annual April salary hikes. The IT company appears to have reinstated its traditional appraisal cycle after a delay last year.
Now, their top performers are set to receive double-digit pay increases, as the company said that the increments will be effective from 1 April across all eligible employees, although the overall quantum of hikes has not been disclosed.
The chief human resources officer Sudeep Kunnumal said, “We have announced annual increments to all eligible employees… with top performance getting a double-digit increase.”
This move indicates that the company is returning to its normal cycle hence marking a return to TCS’s usual appraisal timeline. Prior to this, the salary hikes in the previous cycle were deferred by five months and implemented in September 2025.
Besides this, the increments were also affected as they ranged between 4.5 per cent and 7 per cent for most employees, with higher increases for top performers, as per the report.
Steady Financial Performance Providing Greater Stability
This latest move by TCS of resumption of April hikes indicates greater stability in compensation planning that too during the time when the broader IT sector continues to navigate demand uncertainty and cost pressures.
In the meantime, the TCS’s workforce dynamics present a mixed picture as the company’s total headcount stood at 584,519 at the end of Q4 FY26, down from 607,979 a year earlier.
Although, the company added 2,356 employees on a sequential basis during the quarter.
But the attrition also inched up, with voluntary attrition rising to 13.7 per cent over the last twelve months, from 13.5 per cent in the preceding quarter, reportedly.
Besides the compensation adjustments, TCS continues to invest in building a future-ready workforce, the company made “strong additions across experienced talent and campus hires” in the fourth quarter, Kunnumal said.
In addition to this, TCS is also prioritising building an AI-first culture as Kunnumal added, “Building an AI-first culture and equipping our people with AI-ready skills remained a key priority in FY26 and will continue into FY27.”
It is noteworthy here that the salary hikes come alongside steady financial performance as the company reported a 12.2 per cent year-on-year rise in consolidated net profit to ₹13,718 crore in Q4 FY26, while revenue increased 9.6 per cent to ₹70,698 crore.
TCD’s profit rose 28.7 per cent and revenue grew 5.4 per cent on a sequential basis.
This is a good signal to the economy as TCS is balancing cost discipline with talent retention priorities with the resumption of April increments, combined with continued hiring and skilling investments.
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