TCS Announces Salary Hikes: Employees Get 4.5%–7% Pay Increase, Top Performers Cross 10%

India’s largest IT services company, Tata Consultancy Services (TCS), has rolled out its latest round of salary hikes, effective September 2025. The hikes, ranging between 4.5% and 7%, are primarily targeted at lower- and middle-level employees, according to reports.

The company began sending out increment letters on the evening of September 1, bringing relief to employees after months of uncertainty. Insiders confirmed that top performers received over 10% salary hikes, making them the biggest beneficiaries of this appraisal cycle.

Why the Hike Matters

The announcement comes after salary revision talks were delayed for nearly two months amid challenging market conditions. TCS has not officially commented on the development, but insiders told PTI that wage hikes remain a priority for the company, despite ongoing headwinds in the IT sector.

TCS Attrition Rate on the Rise

The move also comes at a time when TCS is battling higher attrition. The IT major’s attrition rate climbed to 13.8% on a last-twelve-month (LTM) basis for the April–June quarter of FY2025-26, compared to 13.3% in the previous quarter. This marks a two-year high, surpassing the company’s comfort level of 13%.

In July, TCS Executive Vice President and Chief Human Resources Officer Milind Lakkad had said that no decision had been made on wage hikes at that point. He also acknowledged that lowering attrition was a key focus area for the firm.

Looking Ahead

The latest pay revision, while modest for most employees, signals the company’s attempt to retain talent amid competitive market dynamics. With increments of up to 10% for top performers, TCS has sent a strong message on rewarding performance while trying to stabilize attrition levels.