TCS Employee Salary Cuts: IT Professional Reports a Drop from Rs 25,000 to Rs 22,800 Over 5.5 Years
In January 2026, a surprising story from Tata Consultancy Services (TCS) grabbed attention online. An IT professional shared that his monthly salary went down from ₹25,000 in 2020 to ₹22,800 in 2026 after 5.5 years with the company. This claim has shocked many because most tech workers expect their pay to grow with time and experience.
What makes this case stand out is not just the lower salary number. It is the real lived experience behind it, a long career at a major IT firm that, on paper, should mean progress. Many readers are asking whether this reflects a personal issue, a company trend, or a wider pattern in the Indian IT job market.
Let’s look into what happened, why it matters, and what lessons job seekers and IT professionals should take from this unusual salary journey at one of India’s biggest tech employers.
TCS Employee Salary: The Viral Reddit Story
A recent post on the forum r/developersIndia sparked major discussion online in January 2026. The poster said he joined Tata Consultancy Services (TCS) in 2020 with a monthly salary of ₹25,000. After more than 5.5 years, he claims his in-hand pay is now just ₹22,800 per month. This unusual drop caught attention because most workers expect salaries to rise with time and experience.
In his detailed account, he explained that his performance reviews were low for many years. He received performance bands like C or D, which slowed salary growth and sometimes froze appraisals. In July 2025, he was placed on a Performance Improvement Plan (PIP). He later found a new project but did not inform his manager about the PIP. The plan eventually ended without termination, but his appraisal still did not resume.
His story shows how salary figures on paper can stagnate or even shrink due to internal appraisal rules and performance issues. It also stirred debate about upskilling, job movement, and career planning among IT professionals facing similar compensation challenges.
About TCS Appraisals & Performance Bands
At TCS, salary growth is closely tied to performance ratings and band placements. Employees are assessed each cycle, and their performance band affects the percentage of raises they receive. Bands are usually marked A, B, C, or D. Higher bands generally lead to better raises, while C or D bands can result in very small increments or even no hike at all.
Many IT professionals report that repeated lower bands stall their pay growth. In extreme cases, appraisals pause entirely if performance does not meet expectations. Some employees claim they went long periods without meaningful raises despite consistent work, suggesting that performance ratings are a key driver in salary stagnation. This can be frustrating, especially when inflation and living costs rise.
This performance-based appraisal system reflects the broader IT industry’s focus on measurable outcomes. But it also highlights the importance of continuous learning, visible output, and strong reviews if a worker hopes to see solid salary progress over time.
Broader Salary Trends at TCS
In 2025, TCS faced a mix of salary actions that shaped employee compensation. After delaying annual hikes earlier in the year because of uncertainty in the global market, the company eventually rolled out 4.5–7% salary increases for most of its workforce starting in September 2025. Top performers reportedly got over 10% in some cases.
This revision applied mostly to junior and mid-level staff, covering about 80% of employees. Hikes were effective from 1 September 2025, following months of delay and speculation. However, senior levels were largely excluded, continuing a trend of more modest increases at higher grades.
Earlier in 2025, TCS had deferred its usual April salary hikes, citing macroeconomic challenges and unclear demand conditions. It signaled a cautious tone by holding off on revisions until later in the year.
Alongside raises, some employees saw changes in variable pay and performance-linked payouts. These shifts reflect how compensation at TCS has become sensitive to both company performance and broader sector conditions, even as the firm tries to balance investor expectations with talent retention efforts.
Indian IT Sector Compensation Reality Check
The TCS salary story is part of a larger trend in the Indian IT sector. After a boom in hiring and pay increases in previous years, major firms are becoming more cautious. Demand from global clients remains uncertain, and many companies are adjusting pay cycles, deferring hikes, or offering smaller increases compared to the past.
A broader report on Indian corporate hikes shows that across industries, average salary increases in 2025-2026 were expected between 6.2% and 11.3%. This suggests that while many firms still plan raises, tech companies are often at the lower end of this range.
Unlike most sectors where pay typically rises each year, the TCS case highlights how internal appraisal ratings, performance plans, and delayed hikes can cause effective stagnation or even decline in take-home pay. Understanding this context helps explain why some employees talk about flat or slow salary growth in tech roles.
Employee Perspective & Community Reactions
Online forums like Reddit are full of strong reactions from tech workers. Some share similar experiences of long periods without raises, even with good performance, which they find frustrating. Others note that higher salaries are easier to get by switching jobs rather than waiting for internal appraisals. Many comments reflect a sense that staying too long without upskilling or moving can limit salary growth. These voices suggest that priority on skill development matters in the tech sector.
A common discussion point is that employees who switch companies often receive significantly higher pay than those who stay and wait for internal hikes. This view is echoed in multiple threads where members compare compensation after switching to competitors. Overall, the reactions show that pay growth concerns are widespread and that workers are seeking better career strategies amid changing appraisal practices and market dynamics.
TCS Employee Salary: What does this mean for IT Professionals?
For many tech workers, the TCS salary story suggests a few key lessons. First, relying solely on annual appraisals within one company may not lead to strong salary growth. Continuous learning and updating skills can help secure better performance reviews or open doors to higher-paying roles elsewhere.
Switching jobs can often lead to significant pay jumps, especially if new skills are in demand. Planning career moves with a focus on upskilling in newer technologies may offer stronger income growth than staying put without measurable performance gains.
Finally, understanding how salary bands, appraisals, and company policies work can help professionals make smarter career decisions and avoid stagnation in their pay.
Final Words
The TCS salary drop story is unusual but revealing. It shows how internal performance reviews, delayed hikes, and broader industry conditions can affect an employee’s take-home pay even after years of service. While most workers see pay rise over time, cases like this highlight the importance of active career management, continuous skill growth, and knowing when to explore opportunities beyond a single company. As the Indian IT sector evolves, professionals must adapt to changing compensation norms and make informed choices about their careers.
Frequently Asked Questions (FAQs)
Yes. In rare cases, an employee’s take-home pay can fall if appraisals stop, performance ratings stay low, or variable pay is cut. This can make the current salary lower than earlier pay.
TCS hikes have slowed because the company gave smaller increases in 2025 and delayed raises until later in the year amid global uncertainty. Most workers got about 4-7% from Sep 1, 2025.
Yes. Many IT firms like TCS are giving single-digit hikes as growth slows. This reflects a wider trend of cautious pay rises across Indian tech companies.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
