TCS salary hikes announced! Amidst plans to layoff 12,000 employees, TCS rolls out increments for 80% employees; check details
TCS salary hike: Tata Consultancy Services (TCS), India’s largest IT services firm, has announced salary hikes for approximately 80% of its staff members. The salary hikes will mainly cover the IT giant’s junior and mid-level employees. The salary hike comes at a time when TCS has announced that it will lay off around 12,000 employees in the course of this year.The staff reductions at TCS have sparked broader discussions about potential fundamental changes in the IT sector, considering global economic uncertainties, the effects of US tariff policies on outsourcing attitudes, and disruptions caused by artificial intelligence.Currently, leading Indian IT service providers have reported modest revenue increases in Q1 FY26, concluding a challenging June quarter. This performance reflects the impact of unstable economic conditions and political tensions globally, which have affected technology spending and caused delays in client decisions.
TCS Salary Hike: Top Points
In an email communication to staff on Wednesday, TCS CHRO Milind Lakkad and CHRO Designate K Sudeep confirmed that the salary adjustments would take effect from September 1.Also Read | TCS layoffs: What will Tata Consultancy Services do for 12,000 employees it will let go this year? What the IT giant said“We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80 per cent of our workforce. This will be effective 1st September 2025,” according to the email reviewed by PTI.The message further stated: “We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together.”The specific details regarding the percentage of salary increases remain undisclosed at present.“We can confirm that we will be issuing wage hikes to around 80 per cent of our employees effective 1st September 2025,” TCS told PTI.
TCS Layoffs
TCS has called its layoffs part of its comprehensive plan to establish itself as a “future-ready organisation”. The company says this involves focusing on technological investments, artificial intelligence implementation, market growth, and workforce restructuring.“TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model,” the company announced in the previous month as news of staff reductions created waves across the IT sector.Also Read | ‘Don’t resign under pressure….’: TCS layoffs opposed by IT employee unions; IT giant to sack 12,000 employees“Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” TCS had then said.
