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TCS Implements 4.5–7% Pay Hikes for 80% of Staff, Effective Sept. 1

The move signals a retention focus for junior talent during a broader workforce reshuffle.

Overview

  • Raises cover employees up to grade C3A, while senior bands C3B–C5 are excluded, according to an internal email from the HR leadership.
  • Increment letters were issued late Monday and the revised pay will reflect in September payrolls, with no retrospective payout reported.
  • High performers are receiving larger increases, with multiple reports citing awards above 10%.
  • The rollout coincides with a planned reduction of about 2% of roles — roughly 12,000 mid- and senior-level positions — and scrutiny of new bench rules that cap unallocated days at 35 with a 225 billed days target.
  • TCS reported attrition at 13.8% in the June quarter as it resumes its appraisal cycle after delays and delivers one of its leanest hikes in recent years.