TCS has given a big gift to its employees before Diwali. The company has increased the salaries of most employees by 4.5% to 7%, while top performers have received increments of over 10%. This hike is primarily aimed at benefiting lower and mid-level employees and boosting morale.
TCS Salary Hike: Leading IT company Tata Consultancy Services (TCS) has given a significant Diwali gift to its employees. The company has increased the salaries of most employees by 4.5% to 7%, while those with excellent performance have received increments exceeding 10%. Late on Monday night, TCS began issuing increment letters, and this salary hike will be effective from September 2025. This move is intended not only to boost employee morale but also to control the rising Attrition Rate in the past few months.
How Much Was the Salary Hike
TCS has increased the salaries of most employees by 4.5 percent to 7 percent. This increase will be effective from the month of September. The company has informed employees through their increment letters that the new salary will be credited to their bank accounts starting this month. This step has been taken with the objective of boosting employee morale and retaining them with the company for a longer duration.
Good News for TCS Employees
This salary hike comes at a time when TCS had laid off approximately 12,000 employees a few months ago. That news had garnered significant attention in both the IT sector and the stock market. Following the layoffs, a decline was also observed in the company's shares. Now, this decision of salary increase is bringing relief and enthusiasm among the employees.
Which Employees Benefited
According to reports, this salary hike has primarily benefited employees from the lower to mid-levels. Employees who performed better have been given a salary increase of 10 percent or more. This acknowledges their hard work and encourages them within the company.
The company had registered a slight increase in its employee attrition rate in the April-June quarter results, which reached 13.8 percent. The primary reason cited for this increase was a lack of better salaries and performance benefits for employees. TCS has now attempted to control this by implementing a salary hike.
Good Tidings for Employees
This salary increase is part of TCS's strategy to retain employees and maintain their faith in the company. Considering the talent shortage and employee turnover in the IT sector, TCS has prioritized salary increases for employees this year. This move is expected to create an atmosphere of happiness and enthusiasm among the employees.
Experts believe that such salary increases not only boost employee morale but also improve the company's productivity and performance. It enhances employee stability in their work, leading to longer retention with the company.
