Summary
The much-awaited TCS salary hike 2025 has finally been rolled out, bringing good news for thousands of employees at India’s largest IT services company. Tata Consultancy Services (TCS) announced fresh increments effective September 2025, rewarding its workforce with wage hikes ranging between 4.5% and 7%, while top performers secured over 10% pay hikes. This positive development is expected to boost employee morale at a time when the IT sector has been facing uncertain market conditions and rising attrition.
TCS Salary Hike 2025: What Employees Received
According to reports, TCS has begun issuing increment letters to its employees from September 1, 2025. The majority of lower- and middle-level employees have received salary hikes in the 4.5%–7% range, while high-performing talent was rewarded generously with double-digit increments of 10% or more.
This pay hike comes after nearly two months of delay, during which discussions around increments were deferred due to hazy global market conditions. Despite these challenges, the company has ensured that its employees’ contributions are recognized with competitive salary revisions.
TCS Salary Hike 2025
Why This Salary Hike Matters for TCS Employees
Salary hikes in the IT sector are more than just numbers—they serve as a strong retention tool and a motivator in an industry where attrition is a constant challenge. For TCS, which employs over half a million professionals worldwide, such increments help strengthen employee trust and boost workplace satisfaction.
Industry experts believe this move not only rewards hard work but also sends out a positive message to current and prospective employees, assuring them that TCS values long-term talent retention.
TCS Attrition Rate Hits a Two-Year High
While the salary hike is a welcome relief, TCS has been facing challenges on the talent retention front. The company’s attrition rate rose to 13.8% in the April–June quarter of FY2025-26, compared to 13.3% in the previous quarter. This marks a two-year high, making it a point of concern for the management.
TCS’s Executive Vice President and Chief Human Resources Officer (CHRO), Milind Lakkad, acknowledged that attrition levels have gone beyond the company’s comfort threshold of 13%. He assured that measures are being taken to bring attrition under control, and the new round of wage hikes is one such step in the right direction.
TCS Salary Hike 2025
TCS Management’s Earlier Stance on Wage Hikes
Interestingly, just in July 2025, Milind Lakkad had stated during a quarterly press conference that no decision had yet been taken on salary hikes. At that time, the focus was more on stabilizing the workforce and bringing down attrition.
The recent decision to roll out increments shows the company’s strategic shift, emphasizing employee satisfaction and retention as top priorities. With this, TCS aims to assure its people that their dedication is recognized, even amidst global uncertainties.
What This Means for the IT Industry
The announcement of the TCS salary hike 2025 could have a ripple effect across the Indian IT sector. As one of the biggest IT employers in the country, TCS often sets the benchmark for employee policies. Other tech giants may now be encouraged to introduce similar hikes to remain competitive in talent retention and attract skilled professionals.
In a market where layoffs and cost-cutting have become frequent, TCS’s decision stands out as a positive and empowering move, boosting confidence in the IT job market.
TCS Salary Hike 2025
Final Takeaway
The TCS salary hike 2025 is more than just a number—it reflects the company’s commitment to rewarding its employees and addressing growing attrition concerns. With hikes ranging from 4.5% to 7% for most employees and over 10% for top performers, TCS has struck a balance between market realities and employee expectations.
As the IT major continues to navigate global challenges, this proactive move not only boosts employee morale but also reinforces TCS’s position as a leading employer in India’s technology sector.
For professionals in the IT industry, this is a timely reminder that performance, loyalty, and skill development continue to be recognized and rewarded in one of the world’s most dynamic job markets.
Note: All information and images used in this content are sourced from Google. They are used here for informational and illustrative purposes only.
1. What is the TCS salary hike in 2025?
TCS announced a salary hike effective from September 2025. Most lower- and middle-level employees received increments between 4.5% and 7%, while top performers were rewarded with more than 10% hikes.
2. When will the salary hike be effective?
The salary hike will be effective from September 2025. Increment letters were issued to employees starting September 1, 2025.
3. Who is eligible for the TCS salary hike?
The hikes have been rolled out primarily for lower- and middle-level employees. High-performing employees across different levels have received higher increments.
4. How much hike did top performers at TCS get?
Top performers at TCS have received salary hikes of more than 10%, significantly higher than the standard range of 4.5%–7%.
5. Why was the TCS salary hike delayed earlier?
The salary hike was deferred for nearly two months due to uncertain global market conditions. The management had earlier stated that no decision was made regarding increments, but the announcement has now been finalized.
6. What is the current attrition rate at TCS?
As of the April–June quarter of FY2025-26, TCS reported an attrition rate of 13.8% on a last-twelve-month (LTM) basis. This is higher than 13.3% recorded in the previous quarter and marks a two-year high.
7. What steps is TCS taking to reduce attrition?
TCS’s Chief Human Resources Officer, Milind Lakkad, stated that the company is actively working to bring attrition down. The new round of salary hikes is part of these efforts to retain employees and boost morale.
8. How does this hike impact the IT industry?
TCS being the largest IT services company in India often sets benchmarks for the industry. Its decision to roll out salary hikes during challenging market conditions may encourage other IT companies to follow suit, improving employee confidence across the sector.