TCS salary hike: Tata Group's Tata Consultancy Services (TCS)- India's largest software services exporter- Thursday announced annual salary hike for its employees across all grades.
The TCS salary hike will come into effect from April 1, 2026, though the IT giant has not yet revealed the exact increment rate for various grades.
TCS salary hike announced
Announcing the TCS salary hike, Chief HR Officer Sudeep Kunnumal said the appraisal will be implemented across all grades.
"We are pleased to implement annual salary increases across all grades effective 1st April," Kunnumal said, adding that TCS has made strong additions to its headcount, hiring experienced talent and campus hires as the company continued to invest in a "future-ready" in Q4 FY26.
Notably, TCS had announced the previous round of salary hikes in September last year, setting a increment rate between 4.5% and 7% for most grades of its employees , following a brief period of delayed hike.
The last rounds of TCS salary hike had increased the salaries of the companies and lower and mid-level workers, with top performers awarded given as much as 10 percent pay hikes, according to news agency PTI.
How much TCS headcount increased in FY26?
Meanwhile, TCS headcount saw a marginal increase in Q4 FY26, with the IT firm adding around 2,300 employees, taking its total employee base to 584,519, up 0.40% from 582,163 employees in the previous quarter of FY26.
During the quarterly earnings call on Thursday, TCS Chief Executive Officer and Managing Director K Krithivasan said the company added 2,356 jobs in Q4 to take the overall number of employees to 5,84,519 as of March 31, 2026, marking the first quarter of net addition after two consecutive quarters of decline, including an overall decrease of 23,460 people in FY26.
Krithivasan also revealed that TCS' plan to lay off 2 percent of its workforce, or about 12,000 people, has ended.
TCS profits jump 12.22% in March quarter
TCS, India's largest software services exporter, has witnessed a 12.22 percent jumps in its March quarter net profit to Rs 13,718 crore, supported by expanded profit margins, with the company's profit after tax increasing 1.35 per cent to Rs 49,210 crore in FY26 compared to Rs 48,553 crore in FY25.
Addressing the TCS earnings call, Krithivasan said the IT giant is entering the new fiscal year with positive momentum on the back of new deal signings, and asserted that a bulk of the headwinds it had experienced in the recent past are mostly behind.
TCS is the first company in the $315 billion Indian IT sector to report its earnings for the fiscal year 2025-26, which saw a deepening of artificial intelligence (AI) technologies and subsequent concerns on the employee intensity in the sector, which produces one of the best quality jobs in the economy.