Tata Consultancy Services (TCS) has announced annual salary increments for all eligible employees across grades, effective from 1 April, the company’s management said in the post-earnings analyst call.
The hikes would apply across the workforce, with stronger rewards for top performers. “We have announced annual increments to all eligible employees across grades, effective April 1st, the top performance getting a double-digit increase,” the management said during the earnings call.
The update comes after what management described as a period of improving business momentum. The company also reported its third consecutive quarter of sequential growth and said client demand in artificial intelligence and large transformation deals remained strong.
While the company did not disclose the percentage increase for all employees, it made clear in the quarterly report that compensation revisions are linked to its broader focus on building a “future-ready organisation”.
The company also highlighted continued investment in skills and training. According to the management commentary in the report, 69 million learning hours were completed during FY26, while 270,000 associates now possess advanced proficiencies in AI and machine learning.
The salary increase announcement comes alongside continued hiring in specialised areas such as AI, data, cloud, cybersecurity, digital engineering, and consulting.
At the same time, the company’s latest financial disclosures also highlighted the scale of its ongoing workforce realignment. TCS incurred restructuring expenses of Rs 1,388 crore in FY26, which it classified under exceptional items in its consolidated financial statements due to the size and nature of the costs.
The company said Rs 1,268 crore of the total restructuring provision was utilised during FY26 itself, indicating that most of the cost linked to employee exits and related measures has already been absorbed.
Moreover, the Mumbai-headquartered company reported a net reduction of over 23,000 employees, taking its total headcount to 584,519 at the end of the year.
“In Q4, we continued to invest in a future-ready workforce with strong additions across experienced talent and campus hires. Building an AI-first culture and equipping our people with AI-ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers’ evolving needs,” Sudeep Kunnumal, chief HR officer.