TCS increased employees’ salary, lowest increase in 4 years, know when it has been effective
Tata Consultancy Services (TCS) has announced an increase in salary for employees for FY 2025-26. The company on Tuesday announced an increment between 4.5% to 7% for most employees. However, salary has not been increased for senior employees. It is also worth noting that the company has made this lowest increase in the last four years. The decision has come to light after the biggest pruning ever made by the company in July. The company is moving forward on AI based automation and cost cutting strategy.
Will be considered effective from 1 September
According to sources, since late Monday evening, the company has started sending letters related to salary hike. This increase will be considered effective from 1 September. The official response to the email sent by the company is still awaited. The Tata Consultancy Services (TCS) has announced the lowest increment of the last four years for FY 2025-26. The decision has come to light after the biggest pruning ever made 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 discussion about decisions
The company is under discussion with HR related decisions for the last two months. For the past few months, TCS has been in discussion about decisions related to Human Resources (HR). The salary increase was postponed due to the uncertainty of the first market. Then, suddenly the company announced a layoffs of 2% of employees (about 12,000 people). And now, it has been decided to give salary hike to 80% of employees.
Top performers get more than 10% hike
Sources also say that most of the employees from lower to mid level have been eligible for increment. At the same time, the top performors have been given a salary increase of more than 10%. TCS has recorded a 13.8% attraction rate in the June 2025 quarter, which has increased slightly compared to the previous quarter. The company has considered it slightly above its “comfort zone” (11–13%).
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