By: Anurag Tiwari
On Wednesday, August 6, 2025, Tata Consultancy Services (TCS), the biggest provider of IT services in India, notified staff that it will be raising wages for around 80% of its workers, which includes mid- to junior-level positions.
TCS Hike Alert: Pay Raise Coming for 80% Employees from Sept 1
In an email sent to staff on Wednesday, August 6, 2025, TCS CHRO Milind Lakkad and CHRO Designate K Sudeep stated that the pay increases will take effect on September 1.
We are happy to announce a pay increase for 80% of our staff, which includes all eligible colleagues in grades up to C3A and above. According to the email that PTI was able to view, this will take effect on September 1, 2025.
It was not immediately possible to determine the magnitude of wage increases.
The business responded in a statement when contacted for comment: “We can confirm that we will be issuing wage hikes to around 80% of our employees effective 1st September 2025.” The action to retain and reward talent coincides with TCS’s decision to let off more than 12,000 workers as part of a larger plan to create a “future-ready organization.” According to the corporation, this means concentrating on personnel reorganization, market expansion, AI implementation, and technological expenditures.
“TCS is working to build an organization that is prepared for the future. As the news of layoffs rocked the IT industry last month, the company had stated, “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.”
“Several reskilling and redeployment programs have been under progress in order to achieve this. We will also be releasing associates from the organization whose deployment may not be possible as part of this trip. Over the course of the year, this will affect around 2% of our worldwide workforce, mostly in the middle and senior grades,” TCS has previously stated.
In reality, the TCS layoffs have sparked broader discussions about whether or not the IT sector as a whole is about to undergo a significant overhaul, given the volatility caused by global macrouncertainties, the effect of the United States’ crushing tariffs on outsourcing attitudes generally, and disruptions driven by artificial intelligence.
As it stands, India’s leading IT services providers reported single-digit revenue growth in Q1 FY26, ending a rather depressing June period in which geopolitical tensions and financial volatility hampered global tech demand and postponed customer decision-making.
