New Delhi: Tata Consultancy Services (TCS), India’s biggest IT company, has finally announced its salary hikes for FY25 after a long wait of five months. The hikes, however, are among the lowest in the last four years, reflecting the growing pressure of a slowing IT business.
Salary Hike Details
Employees in junior and mid-level roles (from freshers up to grade C3A) will get 4.5% to 7% increments, while top performers may receive over 10% hikes. On the other hand, senior employees in grades C3B, C4, and C5 will not get any increments this year.
Here’s a quick look at TCS salary hikes over the years:
| Financial Year | Average Hike | Notes |
|---|---|---|
| FY22 | 10.5% | Strongest hike in recent years |
| FY23 | 6–9% | Decline begins |
| FY24 | 4.5–7% | Lower hike trend continues |
| FY25 | 4.5–7% | Lowest in 4 years, only juniors covered |
Effective Date of Hikes
Normally, increments are given in April, but this time they will take effect from September 1, 2025. Employees will see revised pay only in their September salaries, and the hikes will not be backdated.
An internal email by TCS CHRO Milind Lakkad and CHRO designate K Sudeep confirmed that this salary revision covers about 80% of the workforce.
Layoffs and Workforce Issues
The hikes come at a time when TCS is also cutting jobs. The company plans to lay off about 2% of its 6 lakh employees, which means over 12,000 mid- and senior-level staff may lose jobs this year. As of June 2025, TCS had more than 6.13 lakh employees.
The cautious approach reflects broader IT sector challenges, such as:
- Slow revenue growth
- Delayed client projects
- Tariff concerns
- Impact of AI adoption
In June, TCS also brought in a new bench policy where employees can have a maximum of 35 unassigned days per year and must target 225 billable days annually.
Employee Reactions
These measures, including lower hikes, layoffs, and new policies, have triggered criticism from employees, unions, and labour departments, who are now closely watching the situation.