**TCS Announces Salary Hikes for Employees Amid Layoffs**
India’s leading IT services firm, Tata Consultancy Services (TCS), has recently announced salary hikes for its employees, providing a welcome relief following the layoffs disclosed last month. Reports indicate that TCS plans to lay off a total of 12,000 employees this year, with layoffs reportedly commencing in July.
**Effective Date of Salary Hikes**
According to an email sent to employees, TCS stated that the salary increases will take effect from September 1, 2025.
**Eligibility for Salary Increments**
Approximately 80% of TCS employees, or four out of five, will be eligible for the salary hike starting September 1. This increase is applicable to employees with around 11 years of experience or less, specifically those in the C3A band. Employees in higher bands, such as C3B, C4, or C5, are not included in this round of raises. The employees receiving the hike have a Cost to Company (CTC) ranging from ₹15 lakh to ₹35 lakh, benefiting over 400,000 employees.
**Official Statement from TCS**
TCS’s Chief Human Resources Officer, Milind Lakkad, along with CHRO Designate K Sudeep, communicated in an email to employees, “We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80% of our workforce. This will be effective from September 1, 2025.”
**Expected Salary Increase Percentage**
While TCS has not disclosed an official percentage for the salary hike, employees can anticipate an increase ranging from 2% to 4% in this cycle. In contrast, last year’s hike, which took effect in April, ranged between 7% and 9%. TCS employees will be among the first in the major IT sector to receive a pay raise, as other companies like Infosys, Wipro, and Tech Mahindra have yet to announce their salary increments, while HCL has indicated that its raises will be rolled out in October.
**Conclusion**
The announcement of salary hikes by TCS comes at a crucial time, providing a sense of security for a significant portion of its workforce amidst the ongoing layoffs. As the IT industry navigates these changes, TCS’s proactive approach to employee compensation may set a precedent for other firms in the sector.
**FAQ**
**What percentage of TCS employees will receive a salary hike?**
Approximately 80% of TCS employees, primarily those in the C3A band and with less than 11 years of experience, will receive a salary hike effective September 1, 2025.
