In a strategic and bold decision, Tata Consultancy Services (TCS) has officially put the TCS salary hike 2025 on hold, sparking mixed reactions across the Indian IT industry.
On the one hand, this move reflects macroeconomic caution, triggered by rising global uncertainty and US tariff pressures. On the other, it showcases TCS’s commitment to long-term resilience, as the company still plans to onboard 42,000 freshers in 2025.
What’s Behind the Delay?
According to CHRO Milind Lakkad, salary hikes will remain paused until the economic landscape improves. CEO K Krithivasan highlighted challenges like client budget cuts, project delays, and the slowdown in discretionary IT spending.
This situation draws parallels to the 2020 salary freeze during COVID-19, suggesting TCS is opting for a cost-control strategy over layoffs.
What Employees Can Expect Now
Although TCS salary hike 2025 is stalled, quarterly variable pay remains unaffected, with 70% of employees receiving full payout in Q4 FY25. TCS also posted a net profit of ₹12,224 crore, with 5.3% YoY revenue growth, reflecting its underlying strength.
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