TCS Announces 4.5–7% Salary Hikes, Double-Digit Raises for Top Performers
Bengaluru, India: India’s largest IT services company, Tata Consultancy Services (TCS), has announced a 4.5–7% annual salary hike for most employees and double-digit increments for top performers, effective September 2025.
Revised Pay Effective This Month
The salary revisions will be reflected when salaries are credited at the end of September, TCS confirmed. The hike percentage remains consistent with last year’s increments, despite the company facing macroeconomic uncertainties earlier this year.
Delay and Resumption of Appraisals
TCS, which typically announces salary hikes in April, had delayed the review due to unfavourable global economic conditions. The decision to resume the hikes aligns with industry-wide practices among major IT firms.
Impact Across Employee Grades
The hike covers employees across various bands, starting from Y-grade trainees to senior C-band engineers. However, salary revisions for senior management are yet to be finalized.
Industry and Workforce Updates
In July, TCS announced a 2% workforce reduction, eliminating around 12,000 positions amid a shift towards AI-driven skills. Analysts suggest this restructuring allowed the company to allocate more resources to salary increments for remaining staff.
Competitors like Infosys and Cognizant have also rolled out similar hikes this year, with average raises between 5–8% and double-digit increments for high performers.
