No first-year hikes, TCS to give only annual increments

India’s largest IT services provider by revenue, Tata Consultancy Services NSE -0.04 % (TCS NSE -0.04 %), will not give out one-year anniversary hikes to employees amid pressure on operating margins.

In a formal letter to those employees who had completed a year with the organisation during the current fiscal year, TCS said they would receive their next increment only along with the annual appraisal cycle, which usually takes place in March.