TCS Rolls Out 4.5%–7% Salary Hikes for 80% Staff, Amid Layoff Plans

Tata Consultancy Services (TCS) – India’s largest IT services firm – has rolled out annual salary hikes ranging between 4.5% and 7%, effective September 1.

According to reports, around 80% of the workforce has received increments, with top performers securing hikes of over 10%.

Typically, TCS begins its appraisal cycle on April 1 each fiscal year, but this year, reports stated, the process was delayed by nearly a quarter amid global macroeconomic uncertainties and a challenging business climate. The company had announced last month that pay revisions would cover junior to mid-level employees, accounting for a large share of its workforce. Associates in grades up to C3A and equivalent levels are now eligible for the revised compensation.

The salary revision comes even as TCS faces turbulence over its restructuring plans. Just weeks earlier, the company revealed it would lay off nearly 2% of its staff – about 12,200 employees – by financial year 26, as part of a strategy to become “future-ready” in an era of rapid technological disruption. The layoffs are expected to primarily affect mid-to-senior-level employees across geographies and business domains.

The retrenchment decision has sparked protests in Chennai’s IT sector, with the Union of IT & ITES Employees (UNITE) strongly opposing the move. The union alleged that TCS is replacing experienced professionals with fresh graduates hired at significantly lower salaries – slashed by as much as 80–85%.

UNITE representative Janani criticized the layoffs as “a callous disregard for employees,” warning that TCS could ultimately let go of 30,000 to 40,000 staff in the coming months. “Instead of retrenching skilled professionals, the company should focus on reskilling and upskilling them to meet the demands of a rapidly evolving IT sector,” Janani added.