'This may be the new normal': LTIMindtree scraps single pay cycle as AI skills take center stage

LTIMindtree will split its FY26 wage hikes across two quarters, marking a structural shift in how the IT firm approaches employee compensation, CEO and MD Venu Lambu said during the Q2 earnings call on October 16.

Starting this fiscal year, 50% of LTIMindtree’s workforce will receive salary increments from January 1, with the remaining half slated for hikes beginning April 1. Lambu hinted this phased approach could become permanent. “We may not have one wage hike in one particular quarter for all employees,” he said. “This may be the new normal.”

The move reflects deeper industry changes, Lambu explained, noting the IT sector is at a “significant inflection point” driven by rapid advances in AI. “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, stressing that skilling is central in the emerging “agent AI era.”

While the announcement came alongside strong quarterly earnings—a 10.3% year-on-year net profit jump to ₹1,381 crore and the company’s first-ever ₹10,000 crore revenue quarter—LTIMindtree’s shifting wage hike cycle has been a trend. In FY24, increments were delayed to August, and in FY25, hikes came in Q3.

The new model positions LTIMindtree as an outlier among peers. At the same time, Tata Consultancy Services is laying off over 12,000 employees due to skill mismatches in AI—a backdrop that underscores the urgency of reskilling across the sector.

Lambu reaffirmed the company’s focus on aligning talent with future needs: “The topic of wage hikes is evolving. We take our employees along in that skilling program, and that will continue to accelerate.”