Tata Consultancy Services (TCS) has announced salary hikes for its staff, starting September 1, 2025.
The announcement comes days after the company announced its plan to lay off over 12,000 employees in fiscal year 2025-2026 (FY26). In the wake of the massive upheaval, the layoff announcement, combined with the company’s new benching policy and onboarding delays, have caused, the salary hikes come as welcome news to many.
“We can confirm that we will be issuing wage hikes to around 80 per cent of our employees effective 1st September 2025,” TCS said in a statement. The hikes will mostly be applicable to the junior-to-mid-level employees. TCS has added that the compensation for eligible associates in grades up to C3A and its equivalent levels will be revised.
“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,” TCS Chief Human Resources Officer (CHRO) Milind Lakkad and CHRO Designate K Sudeep said in an email to employees.
TCS had delayed its salary hikes in April 2025, citing the uncertain global environment as a reason behind the decision. The company did roll out various promotions to keep employee morale up, but salary hikes were put on hold.
Despite the salary hikes, the layoffs announced by TCS remain at the forefront of most minds. TCS CEO K Krithivasan shared the news of firing 2% of the company’s force during an interview with Moneycontrol. As per Krithivasan, TCS wants to create a “future-ready” workforce, denying any influence of AI over the decision.
“We may have to let them go because, most importantly, the effectiveness of deployment or feasibility of deployment is not possible,” said Krithivasan. “This is definitely not an easy time for us, not an easy time for the associates, because we have not done this before. It’s a difficult call we have to take. We have been doing this with a lot of compassion and empathy with proper benefits, counselling, outreach and support.”