TCS increased the salary of employees, the lowest increase in 4 years, know when it will be effective
Tata Consultancy Services (TCS) has announced a salary hike for employees for the financial year 2025-26. The company on Tuesday announced a salary hike between 4.5% to 7% for most employees. However, there has been no salary hike for senior employees. It is also worth noting that this is the lowest increase the company has made in the last four years. This decision comes after the biggest layoff ever done by the company in July. The company is moving forward on AI based automation and cost cutting strategy.
Will be considered effective from September 1
According to sources, the company has started sending letters related to salary hike to the employees from late Monday evening. This increase will be considered effective from September 1. The official reply to the email sent by the company is still awaited. Tata Consultancy Services (TCS) has announced the lowest salary hike in the last four years for the financial year 2025-26. The decision comes after the biggest ever layoff by the company in July, indicating that TCS is now moving rapidly towards AI-based automation and cost cutting strategy.
The company has been in the news for its decisions
For the last two months, the company has been in the news for its HR-related decisions. For the last few months, TCS has been in the news continuously for its decisions related to Human Resources (HR). First, the salary hike was postponed due to market uncertainty. Then, suddenly the company announced the layoff of 2% of the employees (about 12,000 people). And now, it has been decided to give salary hike to 80% of the employees.
Top performers got more than 10% hike
Sources also say that most of the employees from the lower to the middle level have been eligible for salary hike. At the same time, top performers have been given a salary hike of more than 10%. TCS has recorded an attrition rate of 13.8% in the June 2025 quarter, which has increased slightly compared to the previous quarter. The company has considered this to be slightly above its “comfort zone” (11–13%).
