TCS Announces Salary Hike for 80% Staff After Layoffs and Delay
- TCS will roll out salary hikes from September 1, 2025, for employees up to the C3A grade, covering 80% of its staff.
- The annual wage hike, due in April, was postponed due to global demand slowdown and uncertain business conditions.
- No hike details were shared for the remaining 20% of senior-level employees; attrition also peaked at 13.8% in June.
India’s largest IT services firm, Tata Consultancy Services (TCS), will implement salary hikes for 80% of its workforce starting September 1, 2025. This comes weeks after the company laid off over 12,000 employees and postponed its usual April appraisal cycle, citing global uncertainty and weak client demand.
In an internal email reviewed by Reuters, TCS announced that the compensation revision will apply to all eligible employees up to the C3A grade, which includes roles from fresh trainees to assistant consultants with over a decade of experience. The decision comes amid a slowdown in India’s $283 billion IT industry, with cautious spending by clients and delays in project decisions due to sticky inflation and concerns around U.S. trade policy.
The email, jointly signed by CHRO Milind Lakkad and CHRO-designate Sudeep K, did not mention any wage revision details for the remaining 20% of employees at senior levels.
Confirming the development, TCS stated in an official email to Reuters, “We will be issuing wage hikes to around 80% of our employees effective 1st September 2025”, but did not elaborate further.
The delayed hikes come at a time when TCS is also grappling with a rising attrition rate, which hit a two-year high of 13.8% in June.
