TCS Salary Hike: India’s largest IT services company Tata Consultancy Services (TCS) has announced salary revision for mid- to junior-level employees, which nearly covers around 80 per cent of its workforce. Last month, the company announced its decision to lay off 2 per cent of its total worldwide employees, which includes 12,000 mid to senior management employees. Refuting reports of a shift towards Artificial Intelligence (AI), the TCS CEO K Krithivasan said that the reason for the layoffs was skill mismatch as operating models evolve.
The employees were informed about the salary hike on Wednesday via an email by Chief Human Resources Officer Milind Lakkad and CHRO Designate K Sudeep. The hikes are effective from September 1, 2025.
“We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80 per cent of our workforce. This will be effective September 1, 2025,” mentioned the email, as per news agency PTI. “We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together,” the email added.
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TCS Layoffs
According to TCS, the reason for layoffs is not cost cutting or automation, but it is motivated by the challenges of re-employing talents whose current roles no longer meet the growing skill requirements of the company.
TCS has invested heavily in AI upskilling and training, which includes training more than 5.5 lakh employees in basic AI and over 1 lakh employees in advanced skills. The company said that re-skilling of senior professionals does not always lead to redeployment. TCS CEO accepted the fact that senior people find it difficult to transition to tech-heavy roles. This gap between training and re-appointment has been the main reason for layoffs.
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This layoff, which is going to happen gradually by FY2026, will mainly affect middle to senior level employees and a part of junior employees who are not currently employed on any project but are on extended bench time.
Rooted in Tata Groups heritage and established in 1968, Tata Consultancy Services (TCS) is a leading multinational IT company around the world. It is the second largest IT company in India by market capitalisation and is known globally for its reliable services.
TCS offers a variety of modern and advanced technological services to its clients, including analytics, blockchain, cognitive business operations, cybersecurity, enterprise applications, quality engineering, automation, AI, and cloud.