TCS to roll out wage hikes after announcing plans to cut 12,000 jobs. Check details

TCS, last month, announced that it will lay off 12,000 employees during the current financial year to become a 'future-ready organisation'

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26 Aug, 2025 12:21

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Tata Consultancy Services, India’s largest IT services firm, on August 6 announced wage hike for its staff starting September 1, days after the company revealed its plan to lay off 12,000 employees in the current financial year.

The wage hikes are expected to cover around 80 percent of the staff, TCS CHRO Milind Lakkad and CHRO Designate K Sudeep said in an email to employees.

Who all will be covered by the wage hike?

The hikes will be rolled out for junior-to-mid-level employees, covering 80 percent of the company’s workforce. The company said eligible associates in grades up to C3A and its equivalent levels will see a revision in compensation.

“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 1st September 2025,” the email sent by

How much wage hike is expected?

The company has not shared exact details about the roll hike plan. In last appraisal cycle, the IT major had announced an annual increment of 4.5 percent to 7 percent with double-digit jumps for top performers starting April 2024. “We can confirm that we will be issuing wage hikes to around 80 per cent of our employees effective 1st September 2025,” the company said in a statement.

MC Interview: Had to take 'difficult call' to build stronger TCS, says CEO K Krithivasan after cutting 12,000 jobs

Hikes amid layoffs

The Indian IT industry has been under pressure with tepid revenue growth, driven by slow client spending and tariff and artificial intelligence-led changes. TCS, last month, announced that it will lay off 12,000 employees during the current financial year to become a "future-ready organisation".

"TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model," the company had said last month as the news of layoffs shook the IT industry

Interestingly, few weeks before the layoff announcement, the company had said “it hasn’t been able to take any decision on its wage hike cycle”.

TCS Q1FY26: Revenue below estimates as macro uncertainty persists, profit exceeds expectations

The layoffs at TCS have, in fact, ignited larger conversations on whether or not the IT industry itself may be headed for a major reset, amid turbulence from global macro uncertainties, impact of US' crushing tariffs on overall outsourcing sentiments, and the AI-led disruptions.

As it is, India's top IT services companies have delivered single-digit revenue growth in Q1 FY26, capping off a somewhat-sobering June quarter as macroeconomic instability and geopolitical tensions have weighed on global tech demand and delayed client decision-making.

With PTI inputs