India's largest IT employer Tata Consultancy Services (TCS) has awarded 5-8% average pay hikes for FY26 while also restructuring salaries to comply with the new labour codes.

"In line with the announcement made during our Q4 earnings, we have rolled out annual increments to eligible employees," TCS said. "Additionally, we have completed the restructuring of compensation for all our India-based employees to align with the new labour codes."

The latest salary revision is based on compliance with the new labour codes, standardisation of wage structures across the India-based workforce, and protection of employees' take-home salary, while allowing flexibility for tax efficiency, according to the company.


In its annual report, TCS said average annual increase for junior and mid-level employees for FY26 was 4.5-7%, with top performers getting double-digit increments in India. This is the same as the previous fiscal's annual increments.

"However, during the course of the year, total increase is in the range of 5-8% after accounting for promotions and other event-based compensation revisions," the company said. "Junior and mid-level employees outside India received a wage increase between 1-6%." TCS had 5,84,519 employees as of March-end.