TCS Delays Wage Hikes Amid Tariff Woes

Typically, TCS revises the wages of its staff in April every year. (Photo source: TCS)

Tata Consultancy Services Ltd. is delaying wage hikes this year, as the management remains undecided on the salary increment cycle amid tariff woes.

The information technology major plans to make the decision based on the evolving business environment as uncertainty looms the sector. Typically, TCS revises the wages of its staff in April every year.

TCS' employee count at the end of fiscal 2025 stood at 6,07,979, as the company added 625 employees in the fourth quarter. In the entire financial year, the company hired 42,000 freshers.

Milind Lakkad, chief human resources officer at TCS, said, “We have onboarded 42,000 trainees in FY25 and the FY26 number will be similar or a little higher. Regarding the wage hikes, we will decide during the year, considering the uncertain business environment.”

While hiring from the campus remains strategic for the company, the new net additions will depend on the overall business environment and the skill requirements, he added.

TCS is also looking to hire talent for niche and newer technology skills and plans to scout talent from across geographies, even international. The CHRO also said that the company doesn't see AI impacting hiring, as more people would be required with AI for business programmes bringing in new opportunities.

Attrition rate in the fourth quarter for TCS inched up to 13.3% from 13% in the last quarter. The management, however, notes that change in attrition rate is not a cause of concern, as the quarterly annualised attrition rate has reduced by 130 basis points.

TCS reported its fourth quarter results on Thursday, in line with market estimates. The company is seeing the impact amid the current geopolitical movements caused by tariffs announced by the US government. As it remains undecided on the wage hikes, TCS is seeing the improving market sentiment and revival of discretionary spending have not been sustained due to tariff discussions.

The management called out that it is observing delays in decision-making and the start of projects. However, it still expects calendar year 2025 to be better than calendar year 2024 based on the current order book.