India’s third-largest IT services company, Infosys, began implementing wage hikes on February 24. The salary hikes ranged from 5 percent to 8 percent, sources told Moneycontrol.
Additionally, exceptional performers received salary hikes of about 10-12 percent. The Bengaluru-based company classifies performance into four categories: outstanding, commendable, met expectations, and needs improvement.
Salary hikes have been rolled out to employees in band JL6 and below, effective from April 1.
On February 12, Moneycontrol reported that Infosys will issue salary hike letters to its employees by the end of February, with the average increase expected to be in the range of 5 percent to 8 percent.
On January 16, the services giant Infosys said it will roll out 6-8 percent annual salary hikes for its employees in India, starting January 2025. The hikes were planned in phases, with the second phase set to begin in April 2025.
Request for comment to the company did not elicit a response till the time of publication.
In FY25, most top IT companies with the exception of Tata Consultancy Services (TCS) delayed wage hike cycles, which typically happen earlier in the fiscal year. Salaries are a significant part of the companies' wage bills and by delaying it, they are trying to defend margins amid uncertainty over discretionary spending and a challenging demand environment.
According to sources, the company will offer allowances and other benefits for employees in the taxable income bracket to compensate for the lower salary increments.
Infosys employs over 3.23 lakh professionals and last implemented salary hikes in November 2023.
"Broadly, the comp (annual salary increment) that we are expecting is 6-8% in India, and the overseas comps will be in line with the earlier comp reviews," Infosys’ Chief Financial Officer Jayesh Sanghrajka said while addressing the press after declaring the third quarter results ending December 31, 2024 (Q3FY25).
Chief Executive Officer Salil Parekh added that high performers would receive much higher hikes with most employees to see their salary increases in the fourth quarter, he said speaking to analysts after presenting the Q3 results.
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