Top IT firms TCS and Infosys are preparing to roll out annual salary hikes, but increments are expected to remain moderate, ranging between 4-8 percent. This continues the post-pandemic trend of slower salary growth in the IT industry.
Key Updates on Salary Hikes
TCS will issue hike letters with payouts expected between 4-8 percent.
Infosys is set to roll out salary revision letters by March, with hikes likely in the range of 5-8 percent.
Annual salary hikes at top IT companies have declined from double digits during the COVID-19 period to single digits in recent years.
TCS has linked salary hikes and variable pay to employees’ compliance with its return-to-office (RTO) mandate.
In the financial year 2024, TCS salary hikes averaged between 7-9 percent, compared to 10.5 percent in the financial year 2022.
Seventy percent of TCS employees received 100 percent of their variable pay, primarily those in the C3 level and below.
Some TCS employees have expressed concerns over declining hikes over the past three to five years, particularly since the departure of former CEO N Chandrasekaran.
IT Industry Salary Trends
Salary growth in the IT sector has slowed as companies adjust their compensation budgets.
Return-to-office compliance is increasingly being tied to salary hikes and incentives.
Variable pay remains performance-based, with junior-level employees benefiting the most.
With these trends, IT professionals may need to adjust their salary expectations for 2024.
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