TCS resumes April salary hikes after delay, with double-digit raises for top performers

Tata Consultancy Services (TCS) has resumed its annual April salary hikes, reinstating its traditional appraisal cycle after a delay last year, with top performers set to receive double-digit pay increases.

The company said increments will be effective from 1 April across all eligible employees, although the overall quantum of hikes has not been disclosed. “We have announced annual increments to all eligible employees… with top performance getting a double-digit increase,” chief human resources officer Sudeep Kunnumal said, according to Business Standard.

Return to April cycle after delay

The move marks a return to TCS’s usual appraisal timeline after salary hikes in the previous cycle were deferred by five months and implemented in September 2025. At the time, increments ranged between 4.5 per cent and 7 per cent for most employees, with higher increases for top performers, according to PTI.

The resumption of April hikes signals greater stability in compensation planning, even as the broader IT sector continues to navigate demand uncertainty and cost pressures.

Workforce trends remain mixed

TCS’s workforce dynamics present a mixed picture. The company’s total headcount stood at 584,519 at the end of Q4 FY26, down from 607,979 a year earlier, according to Business Standard. However, it added 2,356 employees on a sequential basis during the quarter.

Separately, Mint reported that the company’s headcount rose marginally by around 2,300 compared to the previous quarter.

Attrition has also inched up, with voluntary attrition rising to 13.7 per cent over the last twelve months, from 13.5 per cent in the preceding quarter, according to CNBC-TV18.

Focus on AI-ready talent

Alongside compensation adjustments, TCS continues to invest in building a future-ready workforce. Kunnumal said the company made “strong additions across experienced talent and campus hires” in the fourth quarter.

The company has also prioritised building an AI-first culture. “Building an AI-first culture and equipping our people with AI-ready skills remained a key priority in FY26 and will continue into FY27,” he said.

TCS currently has around 270,000 employees with higher proficiency in AI and machine learning.

Hiring remains focused on areas such as AI, data, cloud, cybersecurity and digital engineering, alongside investments in talent development. The company also added more than 750 employees with consulting and advisory expertise during the year, Kunnumal said.

Financial performance supports payouts

The salary hikes come alongside steady financial performance. TCS reported a 12.2 per cent year-on-year rise in consolidated net profit to ₹13,718 crore in Q4 FY26, while revenue increased 9.6 per cent to ₹70,698 crore.

On a sequential basis, profit rose 28.7 per cent and revenue grew 5.4 per cent.

The resumption of April increments, combined with continued hiring and skilling investments, indicates that TCS is balancing cost discipline with talent retention priorities.

With demand shifting towards AI-led services and digital transformation, future compensation cycles are likely to remain closely tied to skill depth and performance differentiation, even as overall workforce growth stays measured.