after-layoff-notice-tcs-to-roll-out-wage-hikes-for-80-pc-workers

About 80 per cent of Tata Consultancy Services (TCS) employees are set to receive wage hikes, effective September 1, 2025, the company informed its workforce on Wednesday.

The wage hike announcement has come a surprise to many, especially after the country’s largest IT services company said it will lay off about 12,000 employees this year.

TCS CHRO, Milind Lakkad, and CHRO Designate, K Sudeep, informed employees in an email that the company was “pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80 per cent of our workforce,” adding that the hike will be effective September 1 this year.

While the extent of wage hikes could not be ascertained, they will cover mid- to junior-level employees.

 

Also Read: TCS to cut 12,000 jobs under AI-driven restructuring push

The company also confirmed the same in its statement: "We can confirm that we will be issuing wage hikes to around 80 per cent of our employees effective 1st September 2025." 

TCS’s move to reward and retain talent while it lays off a massive number of senior-level employees is seen as part of its strategy to become “future-ready” by focusing on AI-driven technology, market expansion, and workforce realignment.

In its statement last month post the layoff announcement, the company had said: “[Our journey to become future-ready] 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," and added that 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”.

India’s IT industry is on a reset mode this year as AI makes its impression felt in almost every sector even while global economies prepare to face US’ tariffs.

The country’s top IT services companies’ Q1 earnings for FY26 were rather sobering, having delivered single-digit revenue growth.