TCS Salary Hike: 4.5 Lakh Employees To Get Raise From Sept 1 — Eligibility, Increment Percentage & More
As per sources, onshore TCS employees (those working outside India) will receive an increment of 2-4% on their current salary.
Tata Consultancy Services Ltd. employees have something to cheer for. India's largest software services company will roll out increments to nearly 4.5 lakh staffers from Sept. 1, 2025.
Who is eligible? NDTV Profit has learnt that junior to mid-senior level employees in three brackets — C1, C2 and C3A — will qualify for the annual raise. These three categories have an annual CTC (cost to company) of Rs 15 to Rs 35 lakh.
A further breakdown shows that onshore TCS employees (those working outside India) will receive an increment of 2-4% while the offshore staff will get 6-8%, as per people in the know. This is in line with the industry average.
TCS, like most big companies, follows a 'bell curve' model of performance management. This means that employees are categorised into a bell-shaped distribution, typically with high, average and low performers. Strong and outperforming employees will get up to a double-digit increment.
TCS Chief Human Resources Officer Milind Lakkad and CHRO Designate K Sudeep intimated about the wage hikes in an email to employees on Wednesday.
"We are pleased to announce a compensation revision for all eligible associates in grades upto C3A and equivalent, covering 80% of our workforce. This will be effective Sept. 1 2025," says the email seen by news agency PTI.
The move to reward and retain talent comes at a time when TCS has decided to lay off over 12,000 employees as part of what it describes as a broader strategy to become a 'future-ready organisation'. This entails focus on investments in technology, AI deployment, market expansion, and workforce realignment, according to the company.
The TCS attrition rate neared a two-year high at 13.8% in the June quarter of this year, compared to 13.3% in the preceding fourth quarter of FY25. The company added net 6,071 employees, which took its total headcount to 6,13,069.
The company has said it will honour the commitments made through offer letters this year.
