Tata Consultancy Services (TCS), India’s largest IT services company, has announced a salary hike for about 80% of its employees, mainly in junior and mid-level roles. The hike will take effect from September 1, 2025, as confirmed by TCS CHRO Milind Lakkad and CHRO Designate K Sudeep in an internal communication reviewed by PTI.
The compensation revision is expected to impact grades up to C3A and equivalent, covering a significant portion of the company’s global workforce.
No Clarity Yet on Hike Percentage
TCS has not disclosed the exact percentage of the salary increment. However, the move is seen as a morale-boosting gesture amid ongoing layoffs and uncertainties in the tech industry.
In a statement, TCS said:
“We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80% of our workforce.”
The email also acknowledged employee dedication and thanked them for their continued hard work as TCS navigates through transformation and market challenges.
Layoffs Amid Hikes: A Dual Strategy
Interestingly, the salary hikes come even as TCS moves forward with plans to lay off 12,000 employees this year, citing the need to build a “future-ready organisation.”
Most of these layoffs will affect mid-level and senior staff, with the company attributing the decision to its shift toward artificial intelligence (AI), market expansion, and workforce restructuring. According to TCS, approximately 2% of its global workforce will be affected, and redeployment opportunities are being explored.
A Sign of Larger IT Sector Trends
The decision reflects broader trends in India’s IT sector—cost optimisation, automation, and AI integration—especially during a period of global economic instability and changing client demands. It also comes amid political tensions and tariff threats from the US, which are affecting outsourcing sentiment and tech investment.
TCS’s compensation revision, paired with strategic workforce realignment, signals a new era for India’s IT bellwether.
