Mumbai, India – Tata Consultancy Services (TCS), India’s largest IT services company, has announced long-awaited salary hikes after a five-month delay. Starting September 1, 2025, most employees will receive raises in the range of 4.5% to 7%, while top performers will see hikes of over 10%, according to reports.
Traditionally, TCS distributes increments in April, but this year the process was postponed due to uncertain market conditions. The hikes apply to staff from entry-level employees to C3A grade (middle-management), while senior-level bands C3B, C4, and C5 are excluded from this increment cycle.
Lowest Hike in Recent Years
Industry experts note that the current hikes are among the lowest in recent years. In FY24, employees received similar increments of 4.5–7%, compared to 6–9% in FY23 and 10.5% in FY22. The moderation reflects the tough business environment in the IT sector and pressure on TCS’s financial performance.
Job Cuts Alongside Pay Hike
The announcement comes amid restructuring moves at TCS. The company plans to cut nearly 2% of its workforce—amounting to more than 12,000 mid and senior-level employees—by the end of the financial year ending March 2026.
As of June 2025, TCS employed 613,069 people. Sources revealed that the majority of employees receiving increments are from lower and mid-level roles, while higher designations face workforce reductions.
Attrition and HR Challenges
The company’s attrition rate stood at 13.8% in the June quarter, reflecting ongoing challenges in talent retention. Despite the job cuts, TCS has moved forward with salary increments to reassure its workforce. Increment letters reportedly began reaching employees from late Monday evening.
An official response from TCS regarding the hike and workforce restructuring is still awaited.
With global demand uncertainties and cost pressures mounting, the IT giant appears to be balancing employee satisfaction with the need to streamline its operations.