Tata Consultancy Services (TCS), India’s biggest IT services company, has decided to pause annual salary hikes and freeze hiring of experienced professionals across the globe. This move has shaken up the tech sector, indicating just how cautious companies have become in the current economic climate.

No Pay Rises

The company’s Chief Human Resources Officer, Milind Lakkad, said: “Because of the uncertain environment, we will decide during the year on wage hikes. It can be at any time, depending on business.” Traditionally, TCS rolls out annual increments every April, but this year, employees will not see pay rises for the 2025 financial cycle as planned. According to management, the pause is a direct result of global economic uncertainty, cautious customer sentiment, and geopolitical instability. So far, TCS has continued variable pay, stating that 70% of employees are expected to receive their full payout for the March quarter, with the rest depending on business unit performance.

Senior Hiring Paused

At the same time, TCS has announced that experienced or lateral hiring is suspended until further notice. “Tata Consultancy Services will freeze hiring of experienced professionals and pause annual salary increases globally,” reported The Economic Times. While the company still intends to bring in freshers, expansion for experienced roles will be on hold.

For fresh graduates, TCS aims to recruit around 42,000 in the current financial year, slightly above last year’s numbers. “We continue to hire from campuses, and the number could be slightly higher this year than what we added last year,” Lakkad said. However, the company’s ability to absorb the 42,000 engineering graduates hired last year has been impacted by weaker demand in the IT sector.

These measures have created considerable anxiety among employees and job seekers. Many professionals who accepted offers from TCS have experienced onboarding delays exceeding 65 days. Some have resigned from earlier positions and relocated with hopes of joining, only to face vague assurances and long waiting periods. The Nascent Information Technology Employees Senate (NITES) has already flagged these onboarding delays, stating: “Beyond the financial strain, the emotional and psychological distress caused by this sudden state of uncertainty is deeply worrying… We receive desperate calls and emails from professionals who feel abandoned and deceived.”

TCS has responded by saying: “Everyone who has received an offer from TCS will be onboarded. The joining dates are decided as per business demand and, in some cases, they may be adjusted.” However, no firm dates have been committed for joining.

Amid these sweeping changes, it is important to note that just a day prior, TCS had also announced a reduction of over 12,000 jobs, mainly targeting middle and senior-level employees, as part of workforce realignment and cost rationalisation measures. More details on these major job cuts and the company’s restructuring plan were earlier reported and can be found separately.

Furthermore, the company has adopted stricter policies for employees “on bench” (those not assigned to billable projects). Effective from June 2025, TCS benched staff now have just 35 days to find a new assignment or face possible termination. They are also required to spend 4–6 hours a day in upskilling activities and to log a minimum of 225 billable days a year, as part of efforts to increase deployment efficiency.

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