Tata Consultancy Services (TCS), India’s largest IT services company, announced its Q1 FY2025 results on July 11, 2025, reporting a 12% year-on-year revenue growth. However, employees eagerly awaiting salary hikes were left wondering—when will TCS roll out increments in 2025?
In this blog, we break down:
✔ TCS’s official stance on salary hikes from Chief HR Officer Milind Lakkad
✔ Expected increment timelines based on past trends
✔ Which employees will benefit most? (Top vs. junior performers)
✔ How TCS compares to Infosys, Wipro in 2025 hikes
Official Statement: What TCS’s Chief HR Officer Said on July 11, 2025
During the Q1 earnings call, Milind Lakkad (Chief HR Officer) confirmed:
“We are committed to our annual compensation review cycle. Increments will be effective October 1, 2025, with payouts reflected in the October 25 salary cycle.”
Key Details:
- Eligibility: Employees hired before April 1, 2025
- Average Hike: 8-10% for top performers (vs. 6-8% in 2024)
- Promotions: To be announced alongside hikes (30% more promotions than 2024)
This aligns with TCS’s historic October hike cycle, unlike peers like Infosys (June hikes).
Why the Delay? 3 Factors Behind TCS’s October Hike Timeline
- Performance Review Period (April–September):
- TCS evaluates billability, certifications, and project feedback before increments.
- Financial Prudence:
- Q1 revenue grew to $8.2B, but margins at 24.5% (down from 25.6% YoY) prompted cautious spending.
- Attrition Control:
- Current attrition at 12.8% (vs. 15.2% in 2024) reduces urgency for mid-year hikes.
Who Gets the Highest Raises? 2025 Hike Breakdown
| Employee Level | Expected Hike (%) | Key Influencers |
| Top 15% (High Performers) | 12-15% | Billable hours, client feedback |
| Mid 70% (Average) | 6-9% | Certifications, tenure |
| Bottom 15% | 0-4% | Performance improvement plans |
Note: Digital/cloud-skilled roles (AI, cybersecurity) may get additional 5% skill bonuses.
How TCS Stacks Up Against Infosys & Wipro in 2025
| Company | Hike Month | Avg. Hike (%) | Promotion Rate |
| TCS | October | 8-10% | 12% employees |
| Infosys | June | 7-9% | 10% employees |
| Wipro | September | 6-8% | 8% employees |
Industry Trend: Despite AI automation fears, 70% of IT firms hiked salaries in 2025 (vs. 50% in 2024).
Employee Reactions: Mixed Feelings Across Levels
- Senior Developer (7 yrs exp, Mumbai):
“October hikes mean 18 months since our last raise. Inflation makes this painful.” - HR Insider (TCS, Anonymous):
*”Top performers in AI/ML are getting 20% counter-offers. Retention is the real challenge.”*
Looking Ahead: 3 Signs Your 2025 Hike Might Be Bigger
- Billability: >80% allocation in last 2 quarters
- Upskilling: Cloud/AI certifications completed in 2024-25
- Location: Mature markets (US/Europe) roles getting 5% premium
Conclusion: Patience Pays for TCS Employees
While the October 1, 2025 hike timeline may disappoint some, TCS’s structured approach ensures rewards for consistent performers. With higher top-performer hikes and increased promotions, the wait could be worthwhile.
Pro Tip: Employees should check their “MyHR Portal” on September 15 for hike letters.
Sourashis Chanda brings readers their unique perspective on Business, Economy, Health and Fitness. With a background in Health and Physical Fitness of 2years, I am dedicated to exploring [what they aim to achieve with their writing, on the sustainable Economy of the country, various pro tips about business, latest goverment news, with some tips in health are and Fitness.
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
