TCS Gives a Major Raise: 80% of Employees to See Bigger Paychecks Starting September

Tata Consultancy Services (TCS), India’s largest IT services firm, has announced a salary revision for a large section of its employee base. In an internal communication sent on 6th August 2025, the company confirmed that all eligible associates in grades up to C3A and equivalent roles—covering nearly 80% of its workforce—will receive a compensation hike effective from September 1, 2025.

The announcement was jointly signed by Milind Lakkad, Chief Human Resources Officer, and K. Sudeep, CHRO Designate. "We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together," the message stated.

TCS, which employs over 600,000 people globally, typically categorizes its workforce into different bands or grades. The grades up to C3A generally include entry to mid-level roles, which form the operational backbone of the company, according to the company.

This compensation adjustment also marks one of the first major employee-focused decisions under the upcoming leadership of Sudeep, who is set to succeed Lakkad as CHRO.

Also Read: TCS Skips Key Labour Ministry Meet on Onboarding Delays, Layoffs Of 12000 Employees | Republic World

The move comes at a time when the domestic IT sector is navigating a mixed demand environment and signals TCS's commitment to employee retention and morale. While specific percentages of the hike were not disclosed, the revision is expected to benefit a significant portion of the company’s global talent pool.

Incidentally, TCS had announced that it is going to lay off 12,000 employees which is about 2% of its global workforce by the end of March 2026. This is a big change for India's largest IT services company, which has long been seen as a safe place to work in a turbulent business.  

According to the numerous media reports, the layoffs are part of a strategic realignment. The IT major claimed that this is not just because of AI, but also because of tech disruption, tighter client budgets, and stricter internal standards. K. Krithivasan, the CEO, had stated that this was the hardest choice he had ever had to make.