The country's leading IT company, TCS, has decided to increase the salaries of 80% of its employees starting September 1, 2025. This announcement comes just weeks after a large-scale layoff, providing some relief to employees.
Mumbai: Tata Consultancy Services (TCS), the country's largest IT company, announced via an internal mail on Wednesday that the salaries of approximately 80 percent of its employees would be increased, effective September 1, 2025. The announcement was made by the company's Chief HR Officer, Milind Lakkad, and CHRO Designate, K. Sudeep. This move comes weeks after the company laid off approximately 12,000 employees. The salary increase aims to retain the remaining team and boost their morale. The decision is said to be part of the company's long-term talent strategy.
Increments to be Based on Grade System
TCS's staff structure is based on a grade system. It begins with the 'Y' grade, which includes trainee-level employees. This is followed by C1, C2, C3, C4, C5, and then B and CXO levels.
The increment announcement has not been made for all grades, but according to internal sources, the company's focus will be more on mid-level and entry-level employees. It is estimated that employees from grades Y to C4 will be given priority for salary increases.
Enthusiasm Among Employees Regarding Salary Increase
In the recent developments, where there was an atmosphere of uncertainty for the employees, this salary increase is seen as a morale booster for the company. The salary hike announcement comes just weeks after TCS laid off approximately 12,000 employees. The company cited artificial intelligence, automation, and business realignment as the reasons behind this.
Now that the prospect of salary increases for 80 percent of employees has emerged, it not only provides relief to employees but also makes it clear that the company is serious about retaining its existing talent.
Increased Efficiency After Layoffs
TCS has recently made major changes to its workforce under the Future Ready Organization strategy. The company has rapidly moved towards technology, AI, cloud, and market re-orientation.
The impact of this restructuring has been that many old processes have been automated, and layoffs have been carried out after re-evaluating less useful teams. Now, the employees who remain in the company have become even more important. This is why it was considered necessary to increase their salaries.
Other IT Companies Will Also be Affected
This step by TCS may set a trend not only for its employees but for the entire IT sector. It is estimated that companies like Infosys, Wipro, and HCL may also make an announcement in this direction soon.
Experts believe that while layoffs have been carried out to cut costs, it is becoming mandatory to provide better salaries and facilities to the existing workforce to keep them satisfied.
Increased Salary to be Received from September
The company has clarified that this salary increase will be effective from September 1, 2025. Approximately 80 percent of TCS employees will directly benefit from this. The percentage of the increase has not been determined, but internal sources say it could be between 5% and 12%, depending on performance and grade.
