TCS to Roll Out Wage Hikes Starting September 1, Despite Layoff Plans

Tata Consultancy Services (TCS), India’s largest IT services firm, has announced a salary hike for around 80% of its workforce, starting September 1, 2025. This move comes just weeks after the company revealed plans to lay off 12,000 employees in the current financial year.

The announcement was made via an internal email by Chief Human Resources Officer (CHRO) Milind Lakkad and CHRO Designate K Sudeep, assuring employees of upcoming compensation revisions.

Who Will Receive the Hike?

The salary increases will be implemented for junior to mid-level employees, covering a significant portion of the company’s workforce.

“Eligible associates in grades up to C3A and its equivalent levels will see a revision in compensation,” the email stated.

This means that employees in early and mid-career roles can expect updated pay structures starting next month.

Also Read: Indian Pharma Readies for Trump’s Tariff Threat with Multi-Pronged Strategy

Layoffs and Hikes: A Balancing Act?

Just last month, TCS announced a plan to reduce headcount by 12,000 employees as part of its broader effort to become a “future-ready organisation.”

While the layoffs reflect a strategic shift toward automation and efficiency, the wage hikes aim to retain and motivate core talent within the organisation.

The company seems to be balancing cost-cutting measures with employee engagement, especially at the execution level.

What This Means for TCS Employees

For many at TCS, the news brings a mixed bag. On one hand, there’s the relief of salary hikes for a large chunk of staff; on the other, there is uncertainty stemming from the layoff plans.

Still, the company’s decision to move forward with compensation hikes signals that it remains committed to rewarding performance and sustaining morale amid restructuring efforts.

Click here to explore: Tata Consultancy Services Share Price