TCS (Tata Consultancy Services)Salary Structure and Increments After 1 Year in 2023

TCS (Tata Consultancy Services) is one of the largest IT companies in India that offers lucrative career opportunities for both freshers and experienced professionals. This article will provide insights into TCS's salary structure, the hike provided after 1 year across various roles and departments, factors affecting the hike percentage, in-hand salary, and other monetary and non-monetary benefits.

Default Salary Increment After 1 Year

As per TCS's salary increment policy, all employees receive a default increment after completing 1 year of service, known as the First Anniversary (FA) Rating. For freshers who join as Assistant System Engineer Trainees with a starting salary of ₹3.36 LPA, the designation after 1 year would change to Assistant System Engineer.

The increment after 1 year ranges from 20,000 to 50,000 rupees based on the FA ratings given by reporting managers. Employees rated 5 receive around 50,000 increment, while those rated 3 and 4 receive around 30,000 and 40,000 respectively. Due to COVID-19, current slabs are - 5 rating (33,000 increment), 4 rating (30,000 increment) and 3 rating (27,000 increment).

Salary Hike Percentage After 1 Year

The hike percentage after 1 year for TCS employees primarily depends on the FA ratings. However, on average, employees with:

  • 5 rating – 12% hike
  • 4 rating – 10% hike
  • 3 rating – 8% hike

The average overall increment is around 20,000 to 50,000 rupees, translating to 10% hike on 3.36 LPA starting salary.

TCS Salary Structure for Different Roles

The average TCS salary structure for some of the popular roles is outlined below:

Role Average Salary
Software Engineer ₹4.5 LPA
Systems Engineer ₹4.12 LPA
Test Engineer ₹3.32 LPA
IT Analyst ₹6.77 LPA
Software Developer ₹4.53 LPA

The salaries for other roles like SAP Consultants, Project Managers, etc. can go upwards of ₹10 LPA on average.

Factors Determining Salary Growth

While the default increment is standard, several factors determine the subsequent salary growth and hike percentage in TCS:

  • Individual performance rating
  • Number of years of experience
  • Technical expertise and knowledge
  • Internal job posting vs external hiring
  • Location and position type (onsite/offshore)

High performers taking up additional responsibilities are often rewarded with better salary revisions in TCS.

Other Benefits

Besides the basic pay, TCS offers other monetary and non-monetary benefits to its employees such as:

  • Bonus - Average between ₹10,000 to ₹70,000
  • Profit sharing incentives
  • Health insurance and retirement benefits
  • Flexi timings and work from home options
  • Career development and learning opportunities

The work culture, brand value, variable pay and other benefits make TCS a preferred choice for tech professionals in India.


To summarize, TCS offers comprehensive salary packages for both freshers and lateral hires. Employees get a standard increment after 1 year of service based on their FA ratings. The salary structure and subsequent hikes depend on multiple aspects like skills, experience, performance, job role and designation. TCS also provides various monetary and non-monetary benefits to its employees. These aspects contribute to making TCS amongst the top IT companies to work for in India.


Q1: How much is the TCS salary for freshers after 1 year?

A1: The average TCS salary for freshers after 1 year is between ₹3.5 to ₹3.8 LPA. It includes the default increment ranging from ₹20,000 to ₹50,000 based on performance rating.

Q2: What percentage increment does TCS provide after 1 year?

A2: On average, TCS provides an 8-12% salary increment after 1 year of service. Employees with 5 rating get about 12% hike, while 3 and 4 ratings translate to 8% and 10% hikes.

Q3: How is the salary hike decided in TCS after 1 year?

A3: The primary factor determining TCS salary hike after 1 year is the First Anniversary (FA) rating provided to employees by their reporting managers. This rating ranges from 3 to 5 with higher ratings leading to better increments.

Q4: Which TCS department has highest salary?

A4: The Information Design and Documentation department offers some of the highest salaries at TCS. Roles like IT Analyst and Systems Analyst in this department draw an average salary above ₹ 6.5 LPA, going up to ₹ 15 LPA for senior positions.

Q5: How much does TCS pay its Software Engineers?

A5: As per the latest salary structure, TCS Software Engineers draw an average salary of ₹ 4.14 LPA which can go up to ₹ 8 LPA for experienced professionals.

Q6: What allowances do TCS employees get?

A6: Besides basic pay, TCS employees are eligible for bonus payments, profit-sharing incentives, retirement benefits, health/life insurance, flexi-hours, and learning/development allowances as part of their CTC.


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