**TCS Prioritizes Salary Hikes for Employees Amid Growth Focus**
Tata Consultancy Services (TCS), India’s leading IT firm, has emphasized that its primary focus is on implementing salary hikes for its extensive workforce of over 600,000 employees. Chief Financial Officer Samir Seksaria stated, “My priority is getting back to the wage hike,” although he did not provide a specific timeline for when these increases would take effect. In a conversation with the news agency PTI, Seksaria noted that TCS has rarely delayed wage hikes compared to its competitors, reinforcing the company’s commitment to its employees.
Earlier this week, TCS’s Executive Vice President and Chief Human Resources Officer, Milind Lakkad, mentioned that no decisions regarding wage hikes have been finalized yet. Typically, TCS announces salary increments effective from April 1 each year. According to reports, the annual salary increases have a significant impact on the company’s operating profit margin, which has narrowed to 24.5% in the April-June quarter, down 20 basis points, as TCS aims to boost margins to between 26% and 28%.
The company is also facing challenges with employee attrition, which rose to 13.8% on a last twelve-month basis by the end of the April to June quarter of FY2025-26. This figure represents a slight increase from 13.3% in the previous quarter. Seksaria acknowledged the concerning attrition rate and indicated that TCS will prioritize retaining top talent, which is often more challenging than hiring new employees. He hinted that the company may slow down on lateral hiring until demand increases.
Looking ahead, TCS plans to concentrate on achieving growth alongside profitability. Following the April-June quarter, where the company encountered obstacles in both growth and margins, Seksaria stated, “Our focus will be growth with profitability. Only profitability without growth doesn’t help.” For the first quarter of the 2025-26 fiscal year, TCS reported a 6% increase in consolidated net profits, reaching ₹12,760 crore, compared to ₹12,040 crore in the same quarter the previous year. Consolidated revenues also rose by 1.3% to ₹63,437 crore, attributed to the effects of macroeconomic and geopolitical challenges on the business.
In summary, TCS is navigating a complex landscape of employee retention, salary adjustments, and profitability, all while striving to maintain its position as a leader in the IT sector.
**FAQ**
**Q: When does TCS typically announce salary hikes?**
A: TCS usually announces salary hikes effective from April 1 each year.