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India Inc Poised to Offer 6.2% to 11.3% Average Salary Hikes Across Sectors: TeamLease Report

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Corporate India is set to witness salary hikes ranging between 6.2% and 11.3% in the current financial year, as companies realign their workforce strategies with a sharper focus on skill certifications and performance-linked incentives, according to the TeamLease Services’ Jobs and Salaries Primer 2025–26 report released on Tuesday. Drawing insights from over 1,300 organisations across 23 industries and 20 cities, the report highlights that some job roles may see hikes of up to 13.8%. The evolving demand for professionals who can blend technical expertise with business impact is driving this shift in compensation trends, said Kartik Narayan, CEO – Staffing at TeamLease Services. Among the sectors expected to offer the highest salary increases are Electric Vehicles (EV) and EV infrastructure (11.3%), consumer durables (10.7%), retail (10.7%), and non-banking financial companies (NBFCs) (10.4%). Top-paying roles in these sectors include: Electrical Design Engineer in the EV domain (12.4% hike), In-Store Demonstrator in consumer durables (12.2%), Relationship Executive in NBFCs (11.6%), and Fashion Assistant in retail (11.2%). The report also points to a robust revival in the blue-collar segment, thanks to rising infrastructure investments, a growing EV ecosystem, and renewed activity in real estate and manufacturing. Key roles like mechanic (10.4%), material handler (10%), machine operator (9.9%), and electrician (9.3%) are witnessing healthy pay increases. “This strong wage momentum in traditional blue-collar roles signals a need for companies to recalibrate hiring strategies in line with emerging growth sectors. For workers, upskilling will be key to remaining relevant and resilient,” Narayan added. In terms of cities and individual roles, standout salary hikes include: Quality Control Inspector in Pune (13.8%), MIS Executive in Hyderabad (13.4%), Data Engineer in Bengaluru (12.9%), Electrical Design Engineer in Mumbai (12.6%), and Sales Executive in Gurgaon (12.4%). Functionally, the most significant hikes are projected in sales and marketing roles (9.9%), followed by engineering (9.5%). Other domains such as finance, customer service, back-office operations, HR, and administration are expected to receive moderate increases between 8.2% and 8.6%, indicating balanced growth across business functions. Overall, the report underscores a broader recalibration of compensation structures in India Inc, with skill-based hiring, retention incentives, and future-ready talent emerging as strategic priorities. Source: PTI

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TCS to Lay Off Over 12,000 Employees Amid AI Disruption and Economic Pressures

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In a landmark decision, Tata Consultancy Services (TCS), India’s largest IT services provider and the crown jewel of the Tata Group, is set to let go of 12,261 employees — nearly 2% of its global workforce — making it the biggest layoff in the company’s history. The move comes as TCS navigates a rapidly evolving technology landscape marked by AI-driven disruption, weakening demand, and global economic headwinds. The company, which had a workforce of over 610,000 as of June, is restructuring to align with new business realities. Historically, workforce reduction at TCS has been modest — for instance, in FY15, the firm cut about 3,000 jobs, roughly 1% of its employee base. This latest wave of layoffs will largely impact mid- to senior-level professionals, particularly those who cannot be transitioned into new roles within the organization. The restructuring signals a major pivot for TCS, as it intensifies its focus on automation and AI to remain competitive in an increasingly margin-sensitive market. “This transformation is about preparing TCS for the future,” CEO K Krithivasan noted in an internal communication. “While such changes are essential for our continued growth, we recognize the challenges it brings to our colleagues. We deeply appreciate their contributions and will support them through this transition.” Analysts say the decision reflects a broader industry trend. Phil Fersht, CEO of HfS Research, highlighted that AI is significantly disrupting the traditional, manpower-heavy IT services model. Clients are also pushing for steep cost reductions — sometimes as much as 20-30% — compelling firms like TCS to reevaluate their cost structures. The trend isn’t isolated to TCS. Other Tata Group companies such as Tata Motors and Tata Steel have also undertaken job cuts in recent years to streamline operations and boost profitability. In 2019, Tata Steel cut 3,000 positions in its European business. This move by TCS underscores the shifting priorities within the IT industry, where future-readiness increasingly hinges on agility, automation, and leaner operations. Source: Economic Times

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India’s IT Sector Employs Over 6 Million; Govt Unveils Comprehensive AI Strategy

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India’s thriving information technology sector now employs over 6 million professionals and generates annual revenues exceeding $250 billion, the government informed Parliament on Wednesday. Minister of State for Electronics and IT, Jitin Prasada, shared these insights in a written response to the Lok Sabha, emphasizing the country’s expanding footprint in cutting-edge technologies like artificial intelligence (AI). India ranks among the global leaders in AI capabilities, policies, and talent, according to international benchmarks such as the Stanford AI Index. The country also holds the position of the second-largest contributor to GitHub’s AI projects, underscoring its dynamic developer ecosystem. Prasada highlighted that India’s AI strategy is inspired by Prime Minister Narendra Modi’s vision of democratizing technology. The overarching aim is to solve India-specific challenges while fostering inclusive economic growth and employment opportunities. To achieve these goals, the government launched the IndiaAI Mission in March 2024. This initiative is designed to build a robust and inclusive AI ecosystem aligned with national development priorities. The mission operates under a seven-pillar framework: IndiaAI Compute Capacity – Offers affordable high-performance computing resources (including GPUs) to startups and MSMEs. IndiaAI Foundation Models – Focuses on developing indigenous large multimodal AI models trained on local datasets and languages, ensuring technological sovereignty. AIKosh – A unified platform integrating government and private datasets for training AI systems. IndiaAI Application Development Initiative – Targets the development of AI solutions for Indian challenges in sectors like climate resilience, agriculture, public health, governance, and learning assistance. IndiaAIFutureSkills – Aims to create a large pool of AI talent by expanding graduate, postgraduate, and doctoral programs in AI, while setting up Data and AI Labs in smaller cities. IndiaAI Startup Financing – Provides financial backing to AI-driven startups to scale innovations. Trusted AI – Promotes safe and ethical AI use by embedding governance and accountability into innovation. This holistic approach reflects India’s ambition to emerge as a global powerhouse in AI while ensuring the benefits of technology reach every segment of society. Source: IANS

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TCS Offers Full Q1 Variable Pay to Majority of Employees, Keeps Hike Plans on Hold

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Tata Consultancy Services (TCS), India’s largest IT services provider, has disbursed 100% of the quarterly variable allowance (QVA) to over 70% of its workforce for the April–June quarter, according to an internal communication from the company’s HR head, Milind Lakkad. The remaining employees—primarily those in senior roles—will see variable pay linked to the performance of their specific business units. In an email shared with employees last week, Lakkad stated that all staff up to the C2 grade (or equivalent levels) will receive the full variable component for the first quarter. Employees in the higher C3 grade and above, which includes senior and leadership positions, will have their payouts adjusted based on business unit performance. TCS’s employee hierarchy begins with trainees at the ‘Y’ level, moving up through C1 (systems engineer), then C2, C3 (split into A & B bands), followed by C4, C5, and CXO levels. Responding to media queries, a TCS spokesperson confirmed the variable payouts, emphasizing that the process aligns with the company’s standard quarterly compensation framework. However, the company has not yet announced its annual salary increments, citing a challenging global business climate. TCS has seen revenue decline in dollar terms for three consecutive quarters, a trend driven by sluggish discretionary tech spending and broader economic uncertainties. During Q1 FY25, the company added 5,060 employees, bringing its total workforce to approximately 613,000. Reflecting on the quarterly performance, CEO K Krithivasan noted a continued delay in client decision-making and project commencements. “Discretionary investments remain muted and even worsened slightly this quarter due to ongoing global conflicts, macroeconomic concerns, and supply chain disruptions,” he said. Krithivasan added that a rebound in client spending is expected once there’s greater economic clarity. Source: Economic Times  

TCS Offers Full Q1 Variable Pay to Majority of Employees, Keeps Hike Plans on Hold Read More »

TCS Q1 FY26: Attrition Rises Slightly to 13.8%, Net Profit Grows 6.7% YoY

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Tata Consultancy Services (TCS), India’s largest IT services company, reported a modest uptick in employee attrition during the first quarter of the financial year 2025–26. According to a regulatory filing on Thursday, the attrition rate for Q1 stood at 13.8%, up from 13.3% in the March quarter and 13% in the preceding December quarter. As of June 30, 2025, the company’s total workforce had grown to 613,069 employees, reflecting a year-on-year increase of 6,071 from the 607,979 reported at the end of March. Highlighting the company’s focus on skill enhancement, Milind Lakkad, Chief Human Resources Officer at TCS, stated, “Talent development remains central to our strategy. This quarter, our associates dedicated 15 million hours to upskilling, particularly in emerging technologies. We now have over 114,000 employees proficient in advanced AI capabilities.” The IT major also opened the earnings season for the June quarter by posting a 6.7% year-on-year rise in consolidated net profit, reaching ₹12,819 crore, compared to ₹12,105 crore in the same quarter last year. Revenue from operations witnessed a 1.3% increase, totaling ₹63,437 crore, up from ₹62,613 crore in Q1 FY25. Employee benefit expenses climbed 3.6% year-on-year to ₹37,715 crore, while the company’s overall expenses rose 1.6% to ₹48,118 crore. TCS also announced an interim dividend of ₹11 per share. The record date for eligibility is set for July 16, 2025, with dividend payouts scheduled by August 4, 2025. Source: Economic Times

TCS Q1 FY26: Attrition Rises Slightly to 13.8%, Net Profit Grows 6.7% YoY Read More »

Gujarat Revises Factory Labour Laws: 12-Hour Shifts, Night Work for Women Permitted Under New Ordinance

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In a bold move to enhance industrial productivity and attract greater investment, the Gujarat government has enacted a significant overhaul of its factory labour regulations. Through the Factories (Gujarat Amendment) Ordinance, 2025, the state has extended the permissible daily work hours in factories from 9 to 12 hours — a decision that comes with several conditions to safeguard workers’ rights and wellbeing. Although the daily shift limit has been expanded, the ordinance retains the weekly work cap at 48 hours. The new rules mandate that extended shifts must be voluntary and require written consent from workers. Another key change is the increase in uninterrupted work duration, which may now go up to six hours before a break, pending formal notification. Furthermore, overtime provisions have been revised significantly. Workers putting in extra hours will receive double pay, and the cap on overtime has been raised from 75 to 125 hours per quarter, again contingent upon the worker’s voluntary participation. A landmark provision in the amendment is the authorization for women to work night shifts — between 7:00 PM and 6:00 AM — a move hailed as progressive and inclusive. However, this comes with strict safety protocols: employers must ensure a minimum of 10 women are present during a shift, provide secure transport, install 24/7 CCTV surveillance, and deploy female security personnel. Crucially, women can only be scheduled for night shifts with their written consent, and workplaces must have robust anti-harassment measures in place. The ordinance was promulgated in the absence of a state assembly session and reflects Gujarat’s aim to position itself as a more flexible and investment-friendly industrial hub. By aligning labour practices with evolving economic demands, the state hopes to spur job creation and boost competitiveness in the manufacturing sector. Source: IANS

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JSS AHER Collaborates with Google Research to Advance AI-Powered Healthcare

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In a significant leap for India’s medical research landscape, JSS Academy of Higher Education and Research (JSS AHER), Mysuru, has joined forces with Google Research on a pioneering artificial intelligence (AI) healthcare initiative. The outcomes of this collaboration were recently published in two prestigious papers in the journal Nature, underscoring the project’s global relevance and impact. At the heart of the research lies the development of the Articulate Medical Intelligence Explorer (AMIE) — an innovative AI system designed by Google Research to improve diagnostic precision and enhance communication between doctors and patients. The studies assessed AMIE’s capabilities in comparison with trained primary care physicians, using standardized, text-based medical consultations across healthcare systems in India, the UK, and Canada. Dr. B. Suresh, Pro-Chancellor of JSS AHER, expressed pride in the institution’s role in shaping the future of healthcare, stating, “We are at the cutting edge of digital health and AI innovation. In line with these advances, we have also revised our pharmacy curriculum to include AI, ensuring our graduates are equipped for the evolving landscape of medicine.” Echoing this vision, Vice-Chancellor Dr. H. Basavanagowdappa highlighted the institution’s commitment to fostering an innovation-centric academic environment. “This international collaboration enhances our academic standing and gives our students and faculty the opportunity to tackle real-world healthcare issues. Our mission is to develop forward-looking solutions for global health,” he said. With this partnership, JSS AHER cements its position as a leading hub for digital health research, merging academic excellence with cutting-edge technological collaboration. Source: Economic Times  

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Meta Launches New AI Superintelligence Lab, Brings in Top Talent

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Meta CEO Mark Zuckerberg has unveiled a major transformation in the company’s artificial intelligence strategy by introducing a newly formed division focused on building AI systems with superhuman capabilities. The initiative, titled Meta Superintelligence Labs, will spearhead efforts to create AI that can match or surpass human performance in various tasks. At the helm of this ambitious endeavor is Alexandr Wang, co-founder of data-labeling firm Scale AI, who joins Meta as the Chief AI Officer. Zuckerberg, in an internal message to employees on Monday, praised Wang as “the most impressive founder of his generation.” Wang will be joined by Nat Friedman, former GitHub CEO, who will co-lead the lab and guide Meta’s work in applied AI research and product development. Zuckerberg emphasized that AI has become the company’s highest priority this year. “The development of superintelligent AI is no longer a distant concept—it’s within reach,” he wrote. “This marks the dawn of a new era, and I am determined to ensure Meta leads this transformation.” The new direction comes amid an intense race between major tech giants—including OpenAI and Google—to dominate the frontier of AI innovation. Meta has ramped up investments in cutting-edge infrastructure like chips and data centers and has also aggressively recruited top-tier AI talent. A major milestone in this strategy was Meta’s recent $14.3 billion investment in Scale AI, which also brought Wang into the fold. The company is also in discussions to acquire AI startups such as Perplexity AI, Runway AI, and PlayAI, the latter known for using AI to replicate human voices. To further strengthen its superintelligence efforts, Meta has onboarded 11 elite AI researchers from companies including OpenAI, Anthropic, and Google DeepMind. Among the new hires are Jack Rae and Pei Sun from DeepMind, former OpenAI experts Jiahui Yu, Shuchao Bi, Shengjia Zhao, and Hongyu Ren, as well as Anthropic’s Joel Pobar—who previously spent over a decade at Meta. With these moves, Meta is positioning itself to be a dominant force in the next wave of AI evolution. Source: Bloomberg

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Tata Steel Sets Ambitious Goal: 20% Diverse Workforce by 2028

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Marking a decade since the inception of its flagship diversity and inclusion programme, MOSAIC, Tata Steel has reaffirmed its commitment to building an inclusive workplace by announcing a target to achieve 20% workforce diversity across the group by 2028. This announcement aligns with the company’s broader vision of challenging gender norms and breaking barriers in traditionally male-dominated industries. Tata Steel emphasized that its approach to diversity is not just policy-driven but deeply ingrained in its organisational ethos, aiming to foster a culture where every individual feels valued, respected, and empowered. Through progressive human resource policies, the steel major has created a support system that includes gender-neutral parental leave, equal benefits for LGBTQIA+ partners, assistance during gender transition, and inclusive relocation and travel policies — reflecting its commitment to a truly equitable workplace. MOSAIC, which was launched in 2015, serves as the cornerstone of this vision. Built on five strategic pillars — recruitment, sensitisation, retention & development, infrastructure, and celebration — the initiative is designed to cater to the unique needs of underrepresented groups such as women, people with disabilities, LGBTQIA+ individuals, and communities benefiting from affirmative action. “Tata Steel’s people-first philosophy has been a defining force in our journey for more than 100 years,” said Atrayee Sanyal, Chief People Officer at Tata Steel. “We believe diversity fuels innovation, and we remain committed to building a workplace that not only accepts but celebrates individuality.” Over the years, MOSAIC has been instrumental in introducing several pioneering initiatives. From the launch of the Women of Mettle scholarship in 2017 and Women@Mines programme in 2019 to the integration of transgender HEMM operators in 2021, the company has continuously pushed the envelope on inclusion. More recent milestones include the Ananta Quest for students with disabilities in 2023 and the induction of the first female firefighter trainees. In a groundbreaking move in 2024, Tata Steel also launched India’s first all-women mining shift at its Noamundi facility. These efforts reflect Tata Steel’s sustained drive to dismantle stereotypes and embed inclusivity into the fabric of its day-to-day operations, ensuring that every employee, regardless of identity or background, has the opportunity to grow and thrive. Source: PTI  

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Majority of HR Teams Unready for 2025 M&A Surge, Says WTW Report

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With merger and acquisition (M&A) activity expected to rebound strongly in late 2025, a new survey by WTW highlights growing concerns around HR preparedness in navigating complex deal landscapes. According to the Asia-Pacific-focused report, 54% of organisations expect a rise in M&A activity this year, despite a sluggish start, while only 19% anticipate a decline — signalling a potential late-year acceleration driven by pent-up market momentum. However, the report reveals a significant preparedness gap, as 65% of HR professionals admit they feel underprepared to handle the anticipated wave of deals. Among the top challenges cited are conducting thorough HR due diligence (HRDD), pinpointing critical talent, and aligning workplace cultures post-merger. A notable 78% of companies rank the identification of specialised, non-executive talent as their foremost HRDD priority — a concern that overshadows even leadership retention. In fact, 50% of respondents consider retaining this non-executive workforce as the most vital integration success factor, outpacing the emphasis on executive-level continuity by 21 percentage points. Cultural integration remains another major obstacle. Around 74% of companies outside the US and 54% of those within the US consider cultural alignment the most challenging aspect of M&A, surpassing concerns around technological and operational resources. Looking to the future, HR leaders are increasingly acknowledging the role of emerging technologies. About 65% believe Generative AI will influence M&A processes within the next two years. Yet, widespread adoption remains cautious, with many citing limited practical applications beyond legal assessments and internal communications. The findings underscore the importance of embedding HR early in M&A strategy — particularly as companies use acquisitions to gain access to niche digital and AI talent. Strengthening HR capabilities through foresight and investment could be crucial in preserving long-term deal value amid intensifying talent competition. Source: Economic Times   

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