<p>Bengaluru: The country's largest IT services firm, <a href="https://www.deccanherald.com/tags/tata-consultancy-services">Tata Consultancy Services</a> (TCS), has reportedly rolled out an average <a href="https://www.deccanherald.com/tags/salary-hike">salary hike</a> of 5 per cent. But many employees have also claimed salary cuts and a reduction in CTC (cost to company) compared to the previous year.</p><p>Sources told <em>DH</em> that though the company announced hikes, many employees were categorised into bands B and C, with less increments compared to band A. </p><p>One of the employees said it was the worst hike that he/she received in the last four years in TCS. "I got only 3.16 per cent," an employee posted on social media, and another claimed the hike this year was only 2 per cent.</p><p>According to reports, TCS asked its managers to classify at least 5 per cent of the workforce in Band D- the lowest performance category. When asked about it, TCS did not comment.</p><p>However, TCS spokesperson, in a statement, said, "In line with the announcement made during our Q4 earnings, we have rolled out annual increments to eligible employees. Additionally, we have completed the restructuring of compensation for all our India-based employees to align with the new labour codes. The revised salary structure that the employees have received is guided by three key principles that include compliance with the new labour codes, standardisation of wage structures across our India workforce, and protection of employees’ take-home salary, while allowing flexibility for tax efficiency."</p><p>TCS has consistently maintained a track record of awarding annual increments to its associates year-on-year, reinforcing its commitment to employee growth and long-term value creation, the spokesperson added.</p>.AI is now becoming infrastructure of intelligence, says TCS chairman N Chandrasekaran .<p>Many employees have said that their CTC decreased by as much as Rs 10,000. This decrease is attributed to changes in salary structures and variable pay.</p><p>According to the annual report, TCS CEO and MD K Krithivasan's remuneration in FY26 grew 6.3 per cent to Rs 28.1 crore, and his compensation was 332.8 times the median salary of TCS employees.</p><p>The annual report also mentioned that in FY26, the average annual increase for junior and mid-level employees was in the range of 4.5 - 7.0 per cent, with top performers receiving double-digit increments in India.</p><p>However, during the course of the year, the total increase was in the range of 5.0 - 8.0 per cent, after accounting for promotions and other event-based compensation revisions. Junior and mid-level employees outside India received a wage increase varying from 1.5 - 6.0 per cent, the company disclosed in the annual report.</p><p>TCS headcount reduced by 23,460 in FY26, and currently it employs 5,84,519. Last year, the company announced job cuts that had impacted 2 per cent of its global workforce or about 12,250 employees.</p>
<p>Bengaluru: The country's largest IT services firm, <a href="https://www.deccanherald.com/tags/tata-consultancy-services">Tata Consultancy Services</a> (TCS), has reportedly rolled out an average <a href="https://www.deccanherald.com/tags/salary-hike">salary hike</a> of 5 per cent. But many employees have also claimed salary cuts and a reduction in CTC (cost to company) compared to the previous year.</p><p>Sources told <em>DH</em> that though the company announced hikes, many employees were categorised into bands B and C, with less increments compared to band A. </p><p>One of the employees said it was the worst hike that he/she received in the last four years in TCS. "I got only 3.16 per cent," an employee posted on social media, and another claimed the hike this year was only 2 per cent.</p><p>According to reports, TCS asked its managers to classify at least 5 per cent of the workforce in Band D- the lowest performance category. When asked about it, TCS did not comment.</p><p>However, TCS spokesperson, in a statement, said, "In line with the announcement made during our Q4 earnings, we have rolled out annual increments to eligible employees. Additionally, we have completed the restructuring of compensation for all our India-based employees to align with the new labour codes. The revised salary structure that the employees have received is guided by three key principles that include compliance with the new labour codes, standardisation of wage structures across our India workforce, and protection of employees’ take-home salary, while allowing flexibility for tax efficiency."</p><p>TCS has consistently maintained a track record of awarding annual increments to its associates year-on-year, reinforcing its commitment to employee growth and long-term value creation, the spokesperson added.</p>.AI is now becoming infrastructure of intelligence, says TCS chairman N Chandrasekaran .<p>Many employees have said that their CTC decreased by as much as Rs 10,000. This decrease is attributed to changes in salary structures and variable pay.</p><p>According to the annual report, TCS CEO and MD K Krithivasan's remuneration in FY26 grew 6.3 per cent to Rs 28.1 crore, and his compensation was 332.8 times the median salary of TCS employees.</p><p>The annual report also mentioned that in FY26, the average annual increase for junior and mid-level employees was in the range of 4.5 - 7.0 per cent, with top performers receiving double-digit increments in India.</p><p>However, during the course of the year, the total increase was in the range of 5.0 - 8.0 per cent, after accounting for promotions and other event-based compensation revisions. Junior and mid-level employees outside India received a wage increase varying from 1.5 - 6.0 per cent, the company disclosed in the annual report.</p><p>TCS headcount reduced by 23,460 in FY26, and currently it employs 5,84,519. Last year, the company announced job cuts that had impacted 2 per cent of its global workforce or about 12,250 employees.</p>
