TCS Rolls Out 4.5–7% Salary Hikes for Majority of Employee's
TCS rolls out 4.5-7% pay hikes after delay,
A Welcome Raise Amidst Delays and Industry Headwinds
Tata Consultancy Services (TCS)—India’s IT behemoth—has finally announced its annual salary increments, albeit five months later than usual. Starting September 1, 2025, approximately 80% of its workforce, particularly junior and mid-level employees (up to grade C3A), will receive a modest raise ranging from 4.5% to 7% Exceptional performers are expected to enjoy double-digit hikes exceeding 10%
This delay marks a significant deviation from TCS’s usual practice of rolling out increments in April, highlighting the uncertain macroeconomic environment and softness in global client demand.
The Lowest in Recent Years – A Reflection of Industry Pressures
These salary hikes are among the most conservative TCS has offered in four years. For reference:
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FY22: average hikes of ~10.5%
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FY23: 6–9%
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FY24: 4.5–7%
This year's increase remains in the lower band of this spectrum.
This restraint stems from multiple stressors: inflation, cautious client investment, global demand softness, and a broader slowdown in the $283 billion Indian IT sector.
Who Gets the Hike—and Who Doesn’t
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Covered: Freshers and those up to grade C3A will see the revision reflected in their September salary.
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Excluded: Senior-level employees in grades C3B, C4, C5, as well as CXOs, won’t benefit from this cycle.
Additionally, these hikes are not retroactive—no back pay for previous months—further emphasizing the delay’s impact.
Dual Strategy: Hike for Many, Layoffs for Some
While many employees receive a raise, TCS is concurrently undertaking a substantial workforce restructuring. The company plans to lay off around 12,000 mid-to-senior-level staff—about 2% of its six-lakh-plus workforce—as it transitions to a “future-ready organization”
In June, TCS also implemented a new “bench policy,” limiting unbilled (bench) days to 35 per year, pushing employees toward higher productivity and utilization.
What It Means: Balancing Morale, Retention, and Efficiency
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For employees: The raises offer much-needed relief amid cost-of-living pressures, but the modest increase may deflate expectations—especially after the months-long delay.
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For TCS leadership: It’s a tightrope walk—boosting morale where possible while trimming costs and restructuring for agility.
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For the broader IT industry: TCS is among the earliest to resume hikes, while peers like Infosys, Wipro, and HCL are still weighing their moves. The landscape reflects broader uncertainty in global IT spending
Final Thoughts
In sum, TCS’s decision to offer raises—albeit delayed and modest—illustrates the complex pressures facing India’s IT giants. The company is simultaneously trying to safeguard margins, recalibrate its workforce, and reward a large majority of its employees. Whether this strategy sustains morale or simply signals caution in a volatile market will unfold in the coming quarters.
Let me know if you’d like to explore how this compares with peer companies, or want guidance for employees navigating this period of change.