TCS Salary Hike 2025: ‘We Have Not Made A Decision’, Says Chief HR After Q1 Results
TCS attrition rate hits 13.8%, the highest in nearly two years.
Tata Consultancy Services, the country's largest IT services firm, has not finalised any plans for a salary hike for employees this year, according to its executive vice president and chief human resources officer, Milind Lakkad.
Speaking at a press conference on July 10, following the company’s first-quarter financial results, Lakkad said, “We have not made a decision on that front yet and we will decide during the year, and as soon as we know, we'll let you know.”
Elaborating on the delay in wage hikes amid a challenging economic climate, Lakkad explained that any decision would be based on the company’s performance and broader market conditions. “So if the macro-economic environment improves and, as a result, if our business improves, we'll definitely give the best possible hikes we normally give,” he added.
TCS reported a 4% rise in net profit for the quarter ended June 30. The IT giant’s net profit increased to Rs 12,760 crore from Rs 12,224 crore in the previous quarter.
However, revenues dipped sequentially by 1.6% to Rs 63,437 crore, down from Rs 64,479 crore. Operating income (EBIT) also slipped slightly to Rs 15,514 crore, compared to Rs 15,601 crore in the previous quarter. Nonetheless, operating margins held firm at 24.5%.
Despite the subdued revenue numbers, TCS added over 6,000 employees in the quarter, pushing its total headcount to around 6.13 lakh as of June 30. But concerns persist around employee retention. The company’s IT services attrition rate stood at 13.8% over the past 12 months, the highest in nearly two years.
Commenting on the attrition trend, Lakkad said, “I think definitely it is a little more than our comfort level. 11% to 13% is our comfort range; it is a little more than that, we continue to make efforts to bring it down.”
As the company navigates a volatile global economic environment, TCS appears to be maintaining a cautious stance on compensation decisions, with future hikes contingent on improved macroeconomic conditions and stronger business performance.
