TCS Gave 4.5–7%. Infosys Gave 5–8%. Is Your Hike Actually Good?
The 2026 IT appraisal data decoded — and how to know if you are being paid fairly
The numbers are in. India's 2026 IT appraisal cycle is official — and it is the leanest since 2020.
TCS rolled out hikes of 4.5–7% for most employees, with exceptional performers receiving at least 10%. Infosys followed with 5–8%, implemented in two phases. Wipro and Cognizant stayed in the 6–9% band. AI-specialised engineers across companies are negotiating 18–35% in-role hikes — a completely different market.
Before you decide whether to accept, push back, or start looking — here is how to read what you actually received.
The 9.1% headline is misleading
The Aon 2026 Salary Survey projects an average hike of 9.1% for India Inc. The Economic Times reported it as good news. It is not the full story.
That 9.1% is an average across all industries, all roles, and all company types. In practice: - AI, cloud, and security roles: 15–25% increases at competitive employers - Commoditised application dev roles: 6–8% at most - IT services broad base: 4.5–9% (confirmed by TCS and Infosys data) - Manual QA and legacy Java roles: flat to 6%, declining demand
The 9.1% average is arithmetically real. It just does not describe most software engineers at IT services firms — who are getting 4.5–8% while the AI engineers at the same companies are pulling 15–35%.
How to know if your hike is actually fair
There are two questions that matter:
1. What is the market paying for your role right now?
This is not about what your company is paying. It is about what a competing offer would look like. If TCS gave you 6% but you could walk into an offer at 40% higher CTC tomorrow — the 6% is not a generous hike. It is a retention strategy.
2. What percentile does your current CTC sit at?
If you are at P38 for your role and city, a 6% hike moves you to P41. You are still deeply below market. If you are already at P72, a 6% hike maintains your position. Context matters enormously.
Most engineers accept hike percentages without knowing their starting percentile. That is the core problem.
The IT services ceiling is real
Here is a structural reality that the 2026 data makes clear:
Annual increments at IT services firms average 5–8% for the broad base. Market salary growth for skilled engineers in product and GCC roles is running at 12–25% annually through job switches.
This means: staying at an IT services firm on a 6% annual hike cycle, while the market moves faster, results in compounding undervaluation. After three years at 6% annual hikes, an engineer who started at market rate is now 15–20% below it — without any change in their skills or output.
The engineers who keep pace with the market are not the ones who negotiate better annual hikes. They are the ones who switch every 2–3 years and reset their salary to market rate.
When to push back vs when to start looking
Push back if: - Your performance rating was "Exceeds expectations" but your hike was below the band - You have been in the same role for 18+ months without a review - You can name specific, quantified achievements from the last 12 months - Your skills are in the premium band (AI, cloud, KMP, security) but your hike was flat
Start looking if: - Your current CTC is more than 20% below P75 for your role and city - You have been at the same company for 3+ years without a significant jump - Your last two hike cycles were both below 10% - You have skills the market is paying a premium for that your current employer is not pricing
Both paths require the same starting point: knowing your actual market percentile.
The negotiation data point that works
The most effective single piece of evidence in any appraisal conversation in 2026 is a competing offer — or credible evidence of active market interest.
You do not need an offer letter. You need to be able to say, without bluffing: "I have been approached by a few companies for similar roles at ₹X LPA."
That statement is only credible — and only safe — if you have actually tested the market. The engineers who get the best hikes are not the ones who ask the loudest. They are the ones who already know their number.
