Amid Layoffs, TCS Decides to Put Salary Hikes on Hold; Remuneration of Firm’s Top Executives in Spotlight

Following news of layoffs at Tata Consultancy Services (TCS), the Indian IT major is now likely to freeze salary hikes for its employees. The development regarding the pay raise comes as a part of the company’s annual report which suggests that its top brass earned in crores in the financial year ending March 2025.

An internal email sent to the company’s employees, accessed by Economic Times said that the company has decided to put a pause on annual salary increases globally in order to ensure long-term stability of the organisation. Meanwhile, the annual report of India's biggest IT services company suggested that TCS CEO K Krithivasan and other top leaders earned in crores in FY2025.

The firm’s decision to lay off 12,000 employees comes as part of the company's strategy to focus on investments in technology, AI deployment, market expansion, and workforce realignment.

Salary Hikes on Hold

On Saturday, TCS communicated to its employees through an internal email regarding challenges from market and economic uncertainties.

The email read, "As far as FY26 is concerned, on the global front, TCS Q1FY26 results have been impacted by ongoing political tensions and macroeconomic uncertainties.” It further said, “In response, the company has made the difficult decision to put a pause on annual salary increases globally–a decision aimed at ensuring long-term stability and sustainability of the organisation.”

Speaking to ET, a mid-level employee stated that team leaders have implemented restrictions on nearly all external recruitment."There is a huge operational cost cutting in place, we have been told,” he added.

A Look at TCS CEO K Krithivasan’s Salary

The firm’s annual report suggests that TCS CEO K Krithivasan’s salary increased over 4 per cent in FY25.

In the year, the TCS CEO earned around ₹26.52 crore, making a jump of 4.6 per cent from the previous year. The top executive’s salary included a base salary of ₹1.39 crore, benefits, perquisites and allowances worth ₹2.12 crore and ₹23 crore in commission.

Salary Details of Top Execs in Focus

Apart from K Krithivasan, former Chief Operating Officer and Executive Director of TCS NG Subramaniam received a salary of ₹11.55 crore till May 2024.  following which he stepped down. This included a base salary of ₹30 lakh, ₹7.24 crore in benefits, perquisites and allowances and a commission worth ₹4 crore.

In addition to that, TCS chairman N Chandrasekaran received a sitting fee of ₹2.1 lakh, and no commission. Non-executive directors Pradeep Kumar Khosla and Hanne Sorensen received salaries of ₹2.74 crore each and Keki Mistry got a total remuneration of ₹3.06 crore, including ₹3 crore in commission and ₹5.7 lakh in commissions.

 Layoffs at TCS

India’s largest IT firm, Tata Consultancy Services (TCS) announced a layoff for 12,000 employees last week. The job cuts will primarily affect middle and senior-grade workers, accounting for about 2% of the company’s 613,000-plus workforce. “The way we work is changing and the operating model is evolving,” said K Krithivasan, chief executive and managing director of the company, while confirming the layoffs. 

Speaking to Moneycontrol, the company’s CEO also noted that the layoffs were not due to AI replacing jobs but due to a skill mismatch and the company’s inability to redeploy certain employees in its evolving business model.