TCS Salary Hike 2026: Good News for Employees as Tata Consultancy Services Announces Annual Salary Growth

The country’s largest IT company, Tata Consultancy Services (TCS), has announced an annual salary hike for its eligible employees, effective from April 1, 2026. However, the exact percentage increase has not been officially disclosed.

According to a report in Business Standard, the company’s CHRO Sudeep Kunnumal said that eligible employees across all grades will receive annual increments this year. The company added that high-performing employees may receive double-digit salary increases.

Focus on AI Hiring

Kunnumal said the company is focusing on building a future-ready workforce in the fourth quarter. There has been a significant increase in campus hiring as well as recruitment of experienced professionals. In FY26, the primary focus was on strengthening an ‘AI-first’ culture and equipping employees with AI-related skills. The company plans to continue this approach in FY27 to meet evolving customer demands.

Opportunities for Freshers and Experienced Professionals

TCS has made it clear that it will continue hiring both freshers and experienced professionals. Recruitment will focus on areas such as AI, data, enterprise solutions, software engineering, cloud, cybersecurity and digital engineering. In FY26, the company hired more than 750 professionals with expertise in advisory and consulting. Investment in talent development programmes has also been increased.

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Employee Numbers and Past Trends

TCS’s total headcount at the end of FY26 stood at 5,84,519, compared to 6,07,979 in the same period last year. However, on a quarterly basis, the company added 2,356 employees in the fourth quarter. According to the company, around 2.7 lakh employees now have advanced skills in AI and machine learning.

In FY25, TCS had delayed salary hikes by five months, implementing them in September 2025. At that time, the average increment ranged between 4.5% and 7%, while top performers received double-digit hikes.