TCS to implement salary hikes for 80% of workforce from September 1
The specific extent of the salary hikes has not yet been disclosed.
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Tata Consultancy Services (TCS) has announced that it will roll out compensation increases for approximately 80% of its workforce, effective September 1, 2025, even as the company prepares to lay off around 12,000 employees over the course of the year.
The decision was communicated via an internal email sent on Wednesday by Chief Human Resources Officer (CHRO) 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% of our workforce. This will be effective September 1, 2025,” the email said, thanking employees for their “dedication and hard work” as the company embarks on a future-focused transformation.
The specific extent of the salary hikes has not yet been disclosed.
Responding to media queries, the company confirmed the development. “We can confirm that we will be issuing wage hikes to around 80% of our employees effective September 1,” a TCS said in a statement to The Economic Times.
The timing of the wage hikes is notable, as it comes amid a broader workforce restructuring that will see TCS lay off about 2% of its global headcount, largely affecting middle and senior-level employees. This restructuring is part of what the company has termed a strategic shift to become a “future-ready organisation”.
In a previous statement, TCS outlined its transformation plans: “This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model.”
As part of this transition, the company has been undertaking reskilling and redeployment efforts, but acknowledged that some roles would be made redundant. “We will also be releasing associates from the organisation whose deployment may not be feasible,” the company said last month, as news of layoffs began through the industry.
The twin developments—wage hikes and layoffs—highlight the ongoing recalibration within India’s largest IT services firm as it navigates global macroeconomic uncertainty, AI-driven disruptions, and shifting client priorities. The broader IT sector, too, is showing signs of strain: Indian tech majors reported single-digit revenue growth in Q1 FY26, with demand dampened by geopolitical instability and delayed decision-making among global clients.
