TCS to Give Salary Hikes to 80% of Employees Starting September 1

Tata Consultancy Services (TCS) has announced salary hikes for the majority of its employees after it recently announced a layoff of thousands of its mid and senior-level employees, as per news reports. 

Wage Hikes Confirmed for Junior and Mid-Level Staff

As per the news reports, TCS has confirmed that 80% of its workforce, comprising junior and mid-level employees up to grade C3A and equivalent, will receive a salary increase effective from 1 September 2025. 

This compensation revision was officially communicated through an internal memo. 

As per new reports, the email stated “We are pleased to announce a compensation revision for all eligible associates in grades upto C3A and equivalent, covering 80% of our workforce. This will be effective September 1, 2025.” They added, “We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together.”

Although the company did not reveal the average increment this year, in the previous salary cycle, TCS had granted hikes ranging from 4.5% to 7%, with high performers receiving double-digit raises. 

Strategic Layoffs Target Senior Workforce

As per news reports, while the wage hike covers a significant chunk of employees, the remaining 20%, largely mid to senior-level staff, are outside the scope of this compensation revision.

As part of its ongoing structural changes, TCS will lay off approximately 12,000 employees in 2025, which represents about 2% of its global headcount. As per reports, the company confirmed that this step is part of a larger effort to recalibrate its workforce and align talent with emerging technologies and evolving client demands.

TCS Realigns Workforce Amid Delayed Hikes and AI Push

As per news reports, TCS has initiated wage hikes after delaying its usual April cycle, citing macroeconomic uncertainty and weak demand in key markets. In Q1, the company reported a 3.1% year-on-year revenue decline in constant currency and a 3.3% sequential drop, attributing this to delayed client decisions, geopolitical factors, and more. 

While peers like Infosys remain cautious, with CEO Salil Parekh stating they are still evaluating the timing of the next hike following completed increases in Q4 and Q1 of the last fiscal.

Also Read: TCS Partners with a US-Based Firm for Contractual Hiring!

TCS Share Price Performance 

As of August 7, 2025, at 10:27 AM, TCS share price is trading at ₹3,019.40 per share, reflecting a decline of 0.43%. Over the past month, the stock has declined by 11.50%.

Conclusion

TCS’s decision to implement broad-based wage hikes alongside targeted layoffs highlights the dual challenge facing India’s IT giants: the need to retain high-potential talent while recalibrating legacy structures. As the company adapts to macroeconomic pressures, AI disruption, and evolving global demand, it continues to position itself as a leaner, more focused digital services leader.

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