In the fiscal year 2022-23, the average salary hike for Tata Consultancy Services (TCS) employees has fallen to single digits, after a 10.5 percent increase in the previous year, the tech giant’s annual report released on June 7 shows.

The total salary increase, encompassing promotions and other event-based compensation revisions over the year, ranged between six percent and nine percent. The hike for managerial positions too saw a sharp fall to 13.6 percent in 2022-23 from 27.4 percent in the previous fiscal.

Rajesh Gopinathan, who announced his resignation as TCS’ CEO in March 2023 in a surprise move, drew a remuneration of Rs 29.2 crore, an increase of over 13 percent from the previous year. The firm’s CFO NG Subramanian saw a jump of 14 percent in his remuneration to Rs 23.6 crore. This hike though is lower than the increase seen in the previous year. In the financial year 2021-22, both Gopinathan and NGS’s overall compensation had seen a jump of 27-28 percent.

The average salary hike at India's largest information technology company during the year was lower compared to that of its next biggest peer Infosys Ltd. Bengaluru-based Infosys said the average annual increase in the salaries of employees was 9.9 percent in India, after accounting for promotions and other event-based compensation revisions.

However, the average salary hike at Infosys in 2022-23 was also lower compared to the 14.6 percent hike seen in the previous year. The lower salary increases at both IT majors was due to a likely decline in demand for talent amid challenges to technology spending globally.

"The supply-side challenges of the last two years peaked in the first half of 2022-23, with employee churn reaching unprecedented levels," said Rajesh Gopinathan, former MD and CEO of TCS.

"We broke out of the vicious cycle of hiring and counter-hiring within the industry by investing in onboarding an unprecedented number of fresh engineers," he added.​