TCS Announces Salary Hikes Amid Global IT Slowdown, But Increments Hit Four-Year Low

TCS Announces Salary Hikes Amid Global IT Slowdown, But Increments Hit Four-Year Low
India’s IT giant Tata Consultancy Services (TCS) has rolled out its much-anticipated salary hikes, marking the lowest increments in the past four years.
🔹 Hike Range: 4.5% – 7% for junior to mid-level employees (freshers to Grade C3A) 🔹 High Performers: Exceptional performers will see raises above 10% 🔹 Coverage: Nearly 80% of TCS employees benefit, while senior bands (C3B, C4, C5) are excluded 🔹 Effective Date: September 1, 2025 — a five-month delay from the usual April cycle 🔹 Context: The move comes amid a global IT slowdown and TCS’s ongoing cost-cutting measures, including ~12,000 layoffs at mid and senior levels
📉 Increment Trend Comparison:
FY22: ~10.5%
FY23: 6–9%
FY24: 4.5–7%
FY25: 4.5–7% (repeating last year’s lowest hike)
While the announcement provides employees clarity on pay revisions, the modest hikes and delayed schedule reflect the pressures facing the Indian IT sector due to weak global demand.
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