HCLTech has announced a fresh round of salary increments for its employees starting October 2025, reinforcing its commitment to workforce stability and growth.
The move comes amid strong quarterly performance and improved business visibility, particularly in artificial intelligence-led services.
Alongside the pay hikes, the company has introduced a significant change in its compensation structure by merging quarterly variable pay into fixed monthly salaries.
Salary Hikes Based on Performance and Business Growth
The salary increments follow a pattern similar to last year’s cycle, where average hikes stood at around 7 percent, with top performers receiving up to 12–14 percent increases.
While HCLTech has not disclosed the exact percentage of this year’s hike, Chief People Officer Ram Sundararajan confirmed that the company would follow the same process as in 2024.
The decision was announced during the earnings call for the September quarter, where Sundararajan cited strong revenue growth and deal momentum as key drivers behind the move.
HCLTech Shift from Variable Pay to Fixed Salary
In a major policy shift, HCLTech has decided to merge quarterly variable pay with fixed monthly salaries for all employees.
This change will benefit junior staff in particular, who previously received performance-linked pay based on project-level outcomes.
By integrating this component into fixed pay, employees will now receive more predictable monthly compensation.
“For a vast majority, the variable pay was linked to project-level performance.
That is what we are merging with the fixed pay so that it gets paid monthly,” Ram explained.
Senior employees will continue to receive annual performance bonuses, maintaining a differentiated incentive structure across levels.
Impact on Employee Morale and Retention
The timing of the increments and pay restructuring is strategic, aimed at boosting employee morale and retention.
With a workforce of over 226,000, HCLTech has been actively working to reduce attrition and improve fresher hiring.
The revised pay structure will enhance financial stability for employees and simplify compensation management for the company.
Industry analysts view this move as part of a broader trend among IT firms.
These companies are working to stabilize compensation models amid evolving business dynamics.
HCLTech’s decision follows similar actions by peers like Tata Consultancy Services, which rolled out its own salary hikes in September.
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
