The company informed the employees about this on Wednesday. TCS has taken the decision to increase the salary of the employees at a time when it is going to lay off about 12 thousand of its employees this year, that is, about 12 thousand employees are going to lose their jobs. The increase in salary will be effective from September 1. The company’s CHRO Milind Lakkad and the next CHRO Sudeep told these things to the employees in a mail on Wednesday.

How much will the salary increase?

According to the report of news agency PTI, the company announced in the mail that the salary of all eligible associates up to C3A and equivalent grade is being increased. About 80% of the employees will be included in this and the new salary will be effective from September 1, 2025. However, it is not yet known how much the salary of the employees will increase

TCS Layoff: Announcement of salary hike amid layoffs

TCS has announced a salary hike for about 80% of its employees at a time when it has decided to lay off more than 12,000 employees. This announcement of layoffs shook the IT industry. However, the company says that it is preparing itself for the coming era of AI. Announcing the layoffs, the company said that in this phase of change, about 2% of the employees will be affected, which will mainly affect middle and senior grade employees. This decision of TCS has sparked a debate whether the IT industry is going to be shaken on a large scale due to global uncertainty, US tariffs and the rise of AI?

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The Ministry of Information Technology is keeping a close eye on the situation after the announcement of layoff of more than 12,000 employees in the country’s largest IT services company TCS. Meanwhile, there is news that TCS will put a ban on the recruitment of senior employees. Not only this, there is news that the giant company will also put a ban on salary hike at the global level. TCS shares fell by 2% on Monday. Today, on Tuesday too, there is a decline of more than 1%. The company’s shares are trading at Rs 3,047.

What is the detail

An Economic Times report quoting sources said that Tata Consultancy Services will freeze the recruitment of employees at the senior level and will also stop the annual salary hike. According to sources, there is no recruitment of senior employees at the moment. As per its new policy, the Tata Group company has started removing hundreds of retired employees in Hyderabad, Pune, Chennai and Kolkata in a phased manner. Under the new policy, now employees will have to find a new project within 35 days or leave the job.

Let us tell you that TCS did not comment on this. In the report, an employee of a senior post said, “The problem is more serious due to the size and structure of TCS. But some other companies sensed the wave of AI change quickly and invested in it in the initial phase. We have been seeing silent restructuring at the employee level for almost two quarters. It is difficult to say anything about the future right now.”

What is the matter

Let us tell you that on Sunday, Tata Consultancy Services announced a large-scale layoff, which has created a stir in the IT sector. India’s largest IT services company Tata Consultancy Services is going to lay off about two percent or 12,261 employees of its global workforce this year. Most of these will be mid and senior level employees. TCS had a workforce of 6,13,069 as of June 30, 2025. In the recently concluded April-June quarter, the company increased its workforce by 5,000. TCS said in a statement that the move is part of the company’s broader strategy to become a future-ready organization. Under this, the focus will be on investing in new technology areas, entering new markets, using AI extensively for customers and itself, strengthening partnerships, building next-generation infrastructure and reorganizing its workforce model.

The government’s view

Sources said on Monday that the ministry is keeping a close watch on the entire situation in the TCS layoff case and is in constant touch with the company. According to the report, the Ministry of Information Technology is concerned about this development and will investigate it to understand the real reason behind this decision. Meanwhile, the IT employees’ organization has written a letter to Union Labor and Employment Minister Mansukh Mandaviya and requested him to seek clarification from the TCS management. At the same time, ‘Nascent Information Technology Employees Senate’ (NITES) has termed the decision to lay off 12,000 employees as unethical, inhuman and completely illegal.

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