TCS Salary Hike 2025: 80% Employees to Get 4.5–7% Pay Raise Amid Workforce Reshuffle

Tata Consultancy Services (TCS), India’s largest IT services company, has announced salary hikes for a majority of its workforce, even as it prepares to trim headcount at senior levels. According to media reports, nearly 80% of TCS employees will receive pay increases effective September 1, 2025, with the hikes concentrated among junior and mid-level staff.

Quantum of hike

The Mumbai-based firm has rolled out average salary hikes in the range of 4.5% to 7%, with some employees receiving higher increments based on performance. Exceptional performers are set to benefit from hikes exceeding 10%, as per another media report. Increment letters began reaching employees late on Monday, with revised pay scales kicking in from September.

The communication regarding the pay hike was conveyed to employees through an internal email dated August 6, co-signed by Chief Human Resources Officer (CHRO) Milind Lakkad and CHRO Designate K Sudeep. The note highlighted the company’s intention to return to its regular annual appraisal cycle, which had been disrupted earlier due to market uncertainties.

Also Read: TCS Plans 2% Global Workforce Reduction in Middle and Senior Roles Over Next Year | Republic World

Workforce rationalization

The announcement comes against the backdrop of a planned “workforce rationalization”. TCS has indicated that around 12,000 roles, mainly in mid and senior levels, are expected to be cut this year, amounting to roughly 2% of its total employee strength. This dual move reflects the company’s strategy of rewarding frontline employees and high performers, while simultaneously streamlining its cost structure at the top.The decision positions TCS as one of the first major Indian IT players to resume a normal appraisal cycle in FY26, and is likely to be closely watched by peers such as Infosys, Wipro and HCL Tech.

Industry observers say the pay hikes are significant, given that TCS had earlier delayed increments amid a challenging global demand environment for IT services. They also point out that the company is under pressure to retain young talent at a time when attrition rates across the sector have been stabilizing.