TCS Salary Hike 2023 - Complete Details on TCS Performance Bands and Increment Percentages

TCS offers salary hikes based on annual performance bands categorized as A, B and C bands. The increment percentages for these bands in 2023 are:

  • A Band - 8% to 12% hike
  • B Band - 5% to 9% hike
  • C Band - 3% to 6% hike
The key factors determining the salary increment are:
Factor Description
Performance Rating Rating on a scale of 1 to 5 assigned during annual appraisal, 5 being the highest
Allocation of Bands A, B and C bands allocated to each project based on business conditions
Individual Contribution Assessment of individual performance, capabilities and team impact

The salary bands and increments are declared in April post the financial year closing. Employees receive the compensation revision letter indicating the new compensation details.

Understanding TCS Salary Structure

For freshers, the starting salary is around 3.3 LPA which includes base pay, PF, medical and transport allowances. After 1 year, they are eligible for the yearly increment based on the performance rating.

Apart from this yearly cycle, major increments happen on promotion which depends on number of years in role and meeting performance criteria:

  • Assistant System Engineer to System Engineer - 30% to 50% increment
  • System Engineer to Senior System Engineer - 20% to 35% increment

Comparison of Consecutive High Ratings

Employees often aim to achieve the highest A band consecutively to maximize their increments. However, the cumulative difference over 3 years between A and B is only about 0.07%. So the effort required for achieving consistent A bands may not match the small gains.

Factors Impacting Salary Growth

The major factors impacting salary growth in TCS are:

Parameter Impact
Performance Rating Directly influences band assigned and resultant percentage increment
Promotions Move to higher roles leads to substantial increments in salary
Location Higher allowances and benefits offered for metro cities

Other Benefits

The non-monetary benefits of higher performance bands in TCS are not very substantial currently. Earlier higher bands may have received preferential treatment for onsite opportunities, visa approvals etc. which is no longer applicable.


Understanding the TCS compensation structure and performance evaluation process is important for employees from a career growth and financial perspective. Consecutive high performance bands contribute marginally to overall salary growth. Employees must focus on skills upgradation and adopting emerging technologies to become eligible for promotions which ultimately boost their salaries substantially. FAQ:

Q1: How does TCS categorize performance bands?

A1: TCS assigns employees into A, B and C bands annually based on their individual performance and contribution to business deliverables.

Q2: What percentage increment is provided for A band rating?

A2: Employees receiving A band in performance assessment are provided 8% to 12% increment on their existing compensation.

Q3: How frequently are increments provided in TCS?

A3: Increments are provided on an annual basis after the financial year closing. Additional increments are provided on promotions to higher grades.

Q4: What allowances are provided to TCS employees?

A4: TCS provides allowances for medical, phone, transport and meals in addition to the base salary component.

Q5: How can one maximize salary growth in TCS?

A5: Focusing on skills upgradation, increased scope of work through promotions and sustained high performance year on year are key to maximize salary growth.

Q6: Is the variable pay component linked to performance rating?

A6: Yes, employees receiving higher performance bands get higher variable component in their compensation.