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New Delhi: Tata Consultancy Services (TCS), India’s biggest IT company, has announced a fresh round of salary hikes for the majority of its staff. The raise will cover 80% of employees, mostly at junior and mid-levels, and will take effect from September 1, 2025. This development comes just weeks after the company confirmed plans to lay off around 12,000 employees this year.
The timing has caught attention across the IT sector, as the hike comes amid job cuts and a generally uncertain tech environment. Slow revenue growth, geopolitical tensions, and rising pressure from artificial intelligence have already caused hiring freezes and cautious spending across top Indian IT firms. TCS itself wrapped up a slow June quarter with only modest growth in Q1 FY26.
An internal email reviewed by PTI confirmed the hike. "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," the email stated.
The message was sent to staff by CHRO Milind Lakkad and CHRO Designate K Sudeep. The exact percentage of the hike has not been disclosed. But the communication thanked employees for their "dedication and hard work" as TCS continues to "build the future" of the company. A company spokesperson later confirmed to PTI, "We can confirm that we will be issuing wage hikes to around 80 per cent of our employees effective 1st September 2025."
At the same time, TCS is in the middle of a major workforce restructuring plan. The company had earlier said it would release about 2% of its global workforce over the course of this year, affecting mostly middle and senior level employees.
In a previous statement, TCS explained, "TCS is on a journey to become a future-ready organisation. 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."
The company also added that "a number of reskilling and redeployment initiatives have been underway" but confirmed that "we will also be releasing associates from the organisation whose deployment may not be feasible."
TCS is not alone. Many other IT giants are struggling with a tough business environment. From AI-driven automation to shrinking tech budgets, the challenges are growing. Several firms are now focusing on younger talent, large-scale reskilling programs, and building AI-first strategies.
