Tata Consultancy Services Salary Hike: Eligibility, Increment Details Here

India's largest IT services company Tata Consultancy Services (TCS) has decided to roll out wage hikes ranging from two per cent to eight per cent for about 80% of its workforce from September 1, sources told NDTV Profit. 

The hike - both for onshore and offshore employees - will come at a time when TCS is set to lay off about 12,000 employees this year as part of what it describes as a broader strategy to become a "future-ready organisation". 

TCS Chief Human Resources Officer (CHRO) Milind Lakkad and CHRO Designate K Sudeep announced the salary hike decision through an email to employees on Wednesday but did not provide any details.

According to sources, junior to mid-senior level employees in the C1, C2 and C3 categories will qualify for the annual hike. These three brackets have an annual cost to company (CTC) of Rs 15 to 35 lakh. 

The IT service company is looking to provide a two to four per cent raise for onshore employees and six to eight per cent for offshore workers. This is expected to benefit nearly 4.5 lakh employees.

TCS, like most major firms, follows a 'bell curve' model of performance management. This means that employees are categorised into a bell-shaped distribution, typically with high, average and low performers. Strong and outperforming employees will get up to a double-digit increment.

In the email sent to the employees, the company said: "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 TCS attrition rate neared a two-year high at 13.8% in the June quarter of this year, compared to 13.3% in the preceding fourth quarter of FY25. The company added a net 6,071 employees, which took its total headcount to 6,13,069.

The proposed layoffs at TCS had 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 Artificial Intelligence-led disruptions.

As the news of layoffs shook the industry last month, the company said: "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." 

It added: "Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year."