TCS Salary Hike 2025: Tata Consultancy Services (TCS), India’s largest IT services firm, has announced a wage revision for around 80 per cent of its workforce, largely covering mid- to junior-level employees. The move comes even as the company is preparing to lay off about 12,000 staff, or 2% of its workforce, over the course of this year.
The pay hikes, effective from 1st September 2025, were communicated to employees via an internal email on Wednesday, 6th August, by Chief Human Resources Officer Milind Lakkad and CHRO Designate K Sudeep.
“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," said the email, a copy of which was seen by PTI. It added, “We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together."
“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," said the email, a copy of which was seen by PTI. It added, “We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together."
It also noted, “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."
These layoffs have sparked wider conversations about a potential reset in the Indian IT sector, which is navigating global macroeconomic headwinds, disruptions from artificial intelligence, and the impact of protectionist trade measures like US tariffs on outsourcing.
India’s leading IT services players, including TCS, posted subdued single-digit revenue growth in the first quarter of FY26, as economic uncertainty and geopolitical tensions led to a slowdown in global tech spending and client decision-making.
Last month, TCS chief HR officer Milind Lakkad during a post-Q1 earnings press conference had said the company had not yet taken a decision on the salary hike for employees this year due to the ongoing uncertain global economic and geopolitical situation.
K Krithivasan, chief executive officer and managing director of TCS, also highlighted the difficult macroeconomic situation.
“During our last press meet (in April 2025), we had spoken about delays in decision making in projects with respect to discretionary investments. This trend has continued and intensified to some extent in this quarter, and global businesses were disrupted due to conflicts, economic uncertainty and supply chain issues," Krithivasan said.
The IT sector has been facing global headwinds due to the ongoing trade war and geopolitical conflicts.
Source: News18
