Salary increases for 2025 that were initially anticipated to start in April have been formally postponed by Tata Consultancy Services (TCS).
CHRO Milind Lakkad said the company blamed the decision on concerns about tariffs and the state of the world economy, which were brought up by US President Donald Trump.
Tata Consultancy Services (TCS) Has Officially Deferred Salary Hikes for 2025
In reference to pay increases, Lakkad stated, “We will decide within the year when to make that happen.” He made no mention of the hikes’ potential cost.
Annual wage increases are normally implemented by TCS beginning in April and continuing through the first half of the fiscal year.
The business made it clear that promotions are unaffected even though pay increases have been postponed.
When asked if promotions had been delayed during the Q4 earnings press conference, the CFO of TCS responded, “It is in its normal course… These are not something which were unplanned.”
CHRO Lakkad stated that promotions for FY25 have already been implemented and confirmed that they were a part of the scheduled cycle.
“The wage hikes are for FY26… That is why we are basically looking at the way there is uncertainty in the environment,” he stated.
The management claims that the promotion cycle in FY2025 was carried out precisely as it was in FY2024.
For senior grades, TCS conducts two significant promotion cycles in July and January, whereas promotions for junior grades take place virtually every quarter.
The company stressed that promotions have not been delayed and are being carried out in accordance with protocol.
When the economic climate is more clear, decisions will be made regarding when to start paying raises again.
TCS Will Hire 46,000 Freshers This Year, But Stops All Salary Hikes
Tata Consultancy Services (TCS) continues its commitment to campus recruitment, announcing plans to hire 42,000 freshers in FY25. This move reflects the company’s long-term approach to building a strong talent pipeline despite global uncertainty. However, top executives clarified that actual net additions will be subject to overall business demand, project ramp-ups, and client requirements.
Beyond campus placements, TCS is actively seeking talent skilled in emerging and niche technologies. The company plans to broaden its hiring horizon across geographies, including international locations. This reflects a shift toward specialized skills aligned with new-age technology stacks such as cloud computing, AI, cybersecurity, and data engineering.
The CHRO emphasized that these niche skills are critical to meeting evolving client expectations. By expanding talent sourcing beyond traditional hubs, TCS aims to maintain agility and global competitiveness.
