Mumbai, September 3: Employees of India’s largest IT services company, Tata Consultancy Services (TCS), were in for a delight as the firm rolled out its latest round of salary hikes after months of speculation. The company began sending increment letters on the evening of September 1, with the revised pay expected to take effect this month, reported news agency PTI. The move comes amid prolonged discussions around pay revisions that had been deferred earlier due to challenging market conditions.

As per the report, a large section of the workforce has been covered under the new hikes. The announcement marks a significant HR development for TCS, which has faced rising attrition levels and employee concerns over deferred increments in recent quarters. While the company has not issued an official statement, internal communication suggests that the hikes have been extended across different levels of the workforce. Industry watchers see this as a step to boost employee morale and talent retention in an increasingly competitive IT job market. TCS Salary Hike: Tata Consultancy Services Rolls Out 4.5 to 7% Salary Hikes for Majority of Employees.

How Much Raise Has TCS Announced?

According to a PTI report, TCS has rolled out salary hikes in the range of 4.5% to 7% for a majority of its employees. The increments, which began reflecting in letters sent out on September 1, will be effective in September 2025. This round of hikes primarily covers junior and mid-level employees, who form a significant portion of the company’s workforce. TCS Layoffs Backlash: UNITE and CITU Employee Unions Hold Protest Against IT Giant Alleging It Reduced High-Performing Employees; Tata Consultancy Services Issues Statement.

People familiar with the matter said that in addition to the standard hikes, top performers at TCS have received raises exceeding 10%. The company is expected to use these hikes as a retention strategy at a time when attrition levels have touched a two-year high.

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