TCS to roll out salary hikes for 80% of staff starting September 1

Tata Consultancy Services (TCS) will provide salary hikes for a majority of its employees from September 1, the company said in an internal memo on Wednesday.

“We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80 per cent of our workforce,” a message from Chief Human Resources Officer Milind Lakkad and CHRO-designate K Sudeep stated.

TCS was the first company to stall hikes in April, citing an unfavourable and uncertain macroeconomic environment. It maintained this position even last month while announcing its second-quarter results, stating that a decision would be taken at an appropriate time.

The grade structure at TCS begins with Y for trainees, followed by systems engineer at C1, and continues through C2, C3A and B, C4, C5, up to CXO level. Employees in the C3 band are generally classified as senior staff.

However, in July, the company also announced plans to cut about 2 per cent of its workforce—around 12,000 employees—stating they could not be deployed on projects due to rapidly evolving AI skillsets.

These employees, mostly mid- to senior-level managers who have spent decades with the company, were being let go as TCS aimed to protect operating margins, which were under strain.

Analysts said last week that the retrenchment would provide the company with an opportunity to raise salaries for the remaining workforce.

The decision to revise salaries will be a welcome relief for TCS employees, and other companies may follow suit. Cognizant, which was scheduled to implement salary hikes from August 1, has also said it will take a decision on the timing of hikes in the second half of its fiscal, with the intention of covering most employees.

TATA Consultancy Services ( TCS )