Tata Consultancy Services (TCS) has announced that 80% of its employees will receive salary increments effective 1 September 2025, offering some relief to its workforce after months of uncertainty.
According to reports, Chief Human Resources Officer (CHRO) Milind Lakkad and CHRO-designate K. Sudeep communicated the decision via an internal email. While the company has not disclosed the exact percentage of hikes, the effective date has been confirmed.
The announcement comes just weeks after TCS froze hiring and paused annual salary increments globally, following the layoff of 12,000 employees — about 2% of its global headcount. The moves, along with the company’s bench policy that requires employees to find projects within 35 days or exit, had fuelled employee anxiety, particularly in offices across Pune, Chennai, Kolkata and Hyderabad.
In a separate development, TCS has introduced a new hiring model to improve transparency. The company has engaged a US-based firm to manage its third-party staffing vendors, acting as an intermediary and eliminating direct vendor contact with TCS.
The pay revision marks a significant shift in tone for the IT giant, which has been navigating a challenging business environment amid global demand slowdown and operational restructuring.
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