New Delhi: Tata Consultancy Services (TCS), India’s largest IT company, has finally rolled out salary hikes for the financial year ending March 2025, after a five-month delay. Employees in junior to mid-level positions (from freshers up to grade C3A) will get increments between 4.5 percent and 7 percent, while top performers may receive over 10 percent, according to people familiar with the matter.
These increments are among the lowest in the last four years. Average hikes were 4.5–7 percent in FY24, compared with 6–9 percent in FY23 and 10.5 percent in FY22, showing the pressure of a slowing IT business.
Hikes Effective from September 1
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Normally given in April, this year’s increments will only take effect from September 1, 2025. Senior employees in grades C3B, C4, and C5 will not get hikes. The raises will not be backdated, meaning employees will see the revised pay only from their September salaries onward.
An internal email from TCS CHRO Milind Lakkad and CHRO designate K Sudeep informed staff that the revision covers 80% of the workforce.
Layoffs and Workforce Challenges
The hikes come at a time when TCS is also cutting jobs. The company plans to lay off about 2 percent of its 6 lakh employees — more than 12,000 mid- and senior-level staff — this year. As of June 2025, TCS employed over 6.13 lakh people.
The cautious stance reflects broader IT industry struggles: slow revenue growth, delayed client projects, tariff concerns, and the impact of AI on operations.
In June, TCS also introduced a new bench policy, allowing employees a maximum of 35 unassigned days per year, with a target of 225 billable days annually.
These measures have drawn criticism from employees, unions, and even government labour departments, who are monitoring the situation closely.
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