TCS Hikes Salaries By 4.5–7% For Majority of Employees

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Tuesday September 02, 2025
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India’s largest IT services company, TCS, is back in the news for positive reasons. As per sources, the company has rolled out salary hikes ranging from 4.5% to 7% for a majority of its employees. The Tata Group company began sending increment letters from late Monday evening, with the hikes effective from September. Employees in junior to mid-level bands (fresher to grade C3A) are set to receive raises of 4.5% to 7%, while high performers could see increments exceeding 10%, according to sources familiar with the matter.

The hikes are among the lowest in the past four years, reflecting a slowdown in the IT business environment. Average increments stood at 4.5–7% in FY24, compared with 6–9% in FY23 and 10.5% in FY22.  At TCS, the grade structure begins with Y for trainees, followed by C1 (Systems Engineer), C2, C3 (A and B), C4, C5, and CXO levels. Senior-level employees in bands C3B, C4, and C5 are excluded from the hikes.

“The hikes will not be applied retroactively and will be reflected in employees’ September salary,” a source told ET.

The hike comes amid workforce adjustments, as TCS plans to lay off around 2% of its six-lakh workforce, which amounts to over 12,000 mid- and senior-level employees, in the current fiscal year. As of June, the company had 613,069 employees on its rolls.

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