**TCS Announces Salary Hikes for 80% of Employees Amid Layoffs**
Tata Consultancy Services Ltd (TCS) has revealed plans to implement salary increases for 80% of its workforce, effective September 2025. This announcement comes as a relief following recent layoffs disclosed last month. The internal communication, sent via email on August 6, highlighted that the compensation revision will apply to all eligible associates in grades up to C3A, as stated by Milind Lakkad and K Sudeep, the chief human resources officers.
The salary hike is targeted at employees with approximately 11 years of experience or less within the C3A band. However, those in higher bands such as C3B, C4, or C5 have not been included in this round of raises. Last year, salary increases ranged from 7-9%, but the percentage for this year has not been disclosed. This adjustment is particularly significant as it follows a period of uncertainty for employees, characterized by delayed raises, reduced bench time, and substantial layoffs. With rising attrition rates and declining morale, this move signals a potential shift in TCS’s employee strategy.
**Relief After Turbulent Times**
The announcement is a welcome development after a challenging few months for TCS employees. Initially, the company postponed wage hikes due to macroeconomic uncertainties. Subsequently, it reduced the “bench time” allowance—the duration employees can remain without a project—to 35 days. On July 27, TCS also announced a workforce reduction of 2%, affecting around 12,200 employees, primarily in middle and senior management roles.
An anonymous employee remarked, “The company wants to address concerns now that it has announced hikes and reduced bench time. Mr. Lakkad is giving us a parting gift before he leaves as CHRO.” Another executive noted, “These hikes were much awaited,” emphasizing that management had not previously indicated any plans for a revision.
TCS is the first among India’s top five IT firms to announce pay hikes this year, while competitors like Infosys, Wipro, and Tech Mahindra have yet to make decisions. HCL Technologies has hinted at potential hikes in October but has not provided clarity. Traditionally, TCS announces salary increases in April, but this year, management remained silent on the specifics and timing of the adjustments.
The salary hikes come in the wake of TCS experiencing a two-year high attrition rate of 13.8% during the April-June 2025 period, which has led to widespread anxiety among employees. Concerns about job security have permeated all levels of the organization, with even seasoned professionals with over 15 years of experience beginning to seek new opportunities.
**Conclusion**
As TCS navigates through these turbulent times, the recent salary hikes may help restore some confidence among employees. The company’s proactive approach in addressing compensation amidst layoffs could signal a new direction in its employee relations strategy.
**FAQ**
**Q: When will the salary hikes at TCS take effect?**
A: The salary hikes for eligible employees at TCS will take effect in September 2025.
