LTIMindtree to begin Q4 wage hikes, 50% employees covered in first round

The move signals a cautious but notable return to salary revisions after an extended period of restrained spending across India’s IT services sector. 

Over the past year, companies have delayed or moderated compensation increases amid muted global technology demand, slower client decision-making, and persistent macroeconomic uncertainty. Under the proposed framework, eligible employees will see revised compensation take effect from Q4, while the remaining workforce is expected to be covered in subsequent phases, subject to business conditions and performance cycles. 

The company has not disclosed the quantum of the hikes, but the staggered approach points to a selective, performance-linked strategy, mirroring a broader industry trend of calibrated increments rather than across-the-board raises. 

Industry observers say large IT firms are walking a tightrope between controlling costs and retaining critical talent, particularly in high-demand areas such as digital transformation, cloud services, data analytics, and artificial intelligence. 

LTIMindtree’s phased wage hike plan is seen as part of this recalibration, aimed at sustaining employee morale while maintaining margin discipline. 

The development comes as IT services companies begin to report early signs of demand stabilisation, especially in sectors such as banking and financial services, manufacturing, and energy. 

However, discretionary technology spending continues to remain under pressure, keeping companies cautious in their workforce-related investments. 

For employees, the announcement offers a measure of cautious optimism, indicating a gradual normalisation of salary cycles after several quarters marked by deferred or reduced compensation revisions across the sector. 

The phased approach is not new for LTIMindtree. In October 2025, the company announced that it would defer its FY26 wage hikes and spread them across two quarters, with around half of its employees receiving increments from January and the remainder from April. 

The change was announced by Chief Executive Officer and Managing Director Venu Lambu during the company’s second-quarter earnings call on 16 October. The company has adjusted its wage cycle multiple times in recent years. 

In FY25, increments were rolled out during the October–December quarter, while in FY24, salary hikes were deferred from April to August, reflecting the volatility in demand conditions faced by the sector.