TCS salary increments: When will the IT giant announce pay hikes? Chief Human Resources officer Milind Lakkad shares update
Employees of Tata Consultancy Services (TCS) will have to wait a little longer for clarity on salary hikes. In its June quarter financial results announcement, India’s largest IT services firm has indicated that decisions regarding salary increases are still pending.“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,” chief human resources officer Milind Lakkad said whilst addressing queries at the post-results media interaction with ET.TCS had previously disclosed in April that salary increases would be postponed due to business uncertainties. At that time, Lakkad had indicated that the company would reach a conclusion on this matter during the course of the year.
TCS Attrition
The attrition rate at TCS increased to 13.8% during the quarter ending June 30, compared to 13.3% in the previous quarter and 13% in the quarter ending December. The company’s workforce reached 613,069 as of June 30, 2025, up from 607,979 on March 31, 2025. TCS reported a net increase of 6,071 employees year-on-year (YoY).TCS recruited 42,000 graduates in the year ending March and anticipates recruiting an equal or slightly higher number of fresh graduates in FY26. The organisation maintains its current fiscal year target of hiring 40,000 new graduates.
TCS Q1 Results
The IT giant saw a modest June quarter, with consolidated net profit growing 6% year-over-year to Rs 12,760 crore. Sales declined by 3% in constant currency terms, with deal momentum affected across regions due to business uncertainty stemming from US tariffs.The company’s employee benefit costs rose by 3.6% year-over-year in the June quarter, reaching Rs 37,715 crore, up from Rs 36,416 crore in the corresponding period last year. The total expenses increased by 1.6% to Rs 48,118 crore.Shares of Tata Consultancy Services ended the day on Friday down 3.47% at Rs 3,264.50.
