LTIMindtree has announced a significant change in its compensation structure for FY26, opting to split annual salary hikes across two quarters instead of implementing them in a single cycle.
The decision was disclosed during the company’s second-quarter earnings call held on October 16, 2025.
Under the revised plan, 50% of employees will receive their salary increments starting January 1, 2026, while the remaining half will see their hikes take effect from April 1, 2026.
This marks a departure from the traditional April–June hike cycle and reflects broader shifts in the IT industry’s approach to workforce management and compensation.
LTIMindtree CEO Venu Lambu: “This May Be the New Normal”
Venu Lambu, Managing Director and CEO of LTIMindtree, described the move as part of a strategic response to evolving industry dynamics.
“We may not have one wage hike in one particular quarter for all employees,” Venu said during the earnings call.
“This may be the new normal.”
He emphasized that the company is navigating a “strategic inflection point,” driven by rapid technological changes and the growing importance of AI skills.
The phased approach is intended to align compensation with business needs and employee development milestones, particularly in areas related to AI reskilling and cross-skilling initiatives.
AI Reskilling Tied to Compensation Strategy
LTIMindtree’s leadership has linked the staggered pay hikes to its broader push for AI readiness.
Venu noted that the company is investing heavily in upskilling its workforce to meet the demands of AI-driven projects.
“One of the critical aspects of the journey with our employees is how we cross-skill and upskill them to meet the demands of AI projects,” he said.
The company uses compensation to reinforce learning and performance outcomes, and may tie future increments to progress in skilling programs and project delivery.
Industry-Wide Shift Toward Staggered Pay Cycles
LTIMindtree’s decision reflects a growing trend in the IT sector, where companies are rethinking traditional compensation models.
Factors such as global economic uncertainty, evolving client expectations, and the need for agile talent deployment are prompting firms to adopt more flexible pay structures.
The move also follows LTIMindtree’s strong financial performance in the September quarter, where it reported a 10.3% increase in consolidated net profit, reaching ₹1,381 crore.
This financial stability provides the company with room to experiment with compensation strategies that support long-term workforce planning.
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