Murthy's return boon for staff; Infosys hikes salary by 8%
Narayana Murthy's return proves to be boon for employees, the company annouces an average 8 percent salary hike higher than 6 percent provided last year.
June 14, 2013 / 16:16 IST
Moneycontrol Bureau
Within weeks of founder Narayana Murthy's return to Infosys, the company announced an eight percent average salary hike for its employees in India for the year 2013-14. Employees based in other geographies, who have not been covered by salary increases in February 2013, would see their pay-packets increasing by an average three percent, the company said in a statement. The increments will be effective July 1, 2013. Infosys, which had been underperforming its peers like Tata Consultancy Services (TCS) and missing its revenue guidance for almost a year now, had to bring back mentor Murthy after its restructuring under Infosys 3.0 strategy failed to garner desired result. The country's second largest IT services exporter missed its annual guidance for the second consecutive year, and registered decline in overall revenue growth and also gave a muted guidance for 2013-14. Today Infosys is down a whopping 32 percent from an all-time high of Rs 3,493.95 that the stock touched on January 7, 2011. Infosys is currently trading at Rs 2379.10 on the BSE.It must be noted that in fiscal 2013, Infosys had to postpone salary hikes due to falling revenues from April to October. Infosys was the only tier-I company to not have increased salaries then. Later in October, the company had announced an average 6 percent hike in salary of Indian employees in October. Most Indian IT firms give increments around April or May. As Infosys has been going through a tough phase, speculations were rife that it might delay hikes this year as well.The announcement comes within days after Murthy was recalled from retirement and appointed as the executive chairman for a period of five years. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
