Information technology services giant Infosys will roll out 6-8 percent annual salary hikes for its employees in India, starting January 2025. This will be phase one of its planned salary revisions, with the second one beginning in April 2025.
"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).
Infosys employs over 3.23 lakh professionals.
On January 5, Moneycontrol reported that India’s second-largest IT company had deferred annual wage hikes to the fourth quarter of the current financial year (Q4FY25). The Bengaluru-based company last implemented salary hikes in November 2023.
Typically, implemented earlier in the year, the wage hike delay reflects the broader uncertainty in the global demand environment, particularly for discretionary IT services. IT companies face pressure from weak discretionary spending, delayed client budgets, and ongoing macroeconomic uncertainties.
Meanwhile, the company said it doesn’t quantify the impact of wage hikes on margins, however, Sanghrajka cautioned that it could create "some headwinds" in the fourth quarter of FY25 and the first quarter of FY26.
On the other hand, salary hikes will be in line with previous compensation reviews, with low single-digit increments for employees domiciled outside India.
"Of course, high performers would receive much higher hikes, et cetera. Most employees will see their salary increases in the fourth quarter," Chief Executive Officer Salil Parekh disclosed further while speaking to analysts after declaring the Q3 results.
Nonetheless, the IT major's Q3FY25 net profit rose 11.4 percent year-on-year, beating Street estimates, to Rs 6,806 crore, from Rs 6,106 crore in the year-ago period. According to a Moneycontrol poll of nine brokerages, the IT major's Q3FY25 profit was pegged at Rs 6,734 crore and revenue at Rs 41,206 crore.
Infosys revenue from operations rose 7.5 percent to Rs 41,764 crore in Q3FY25 as compared to Rs 38,821 crore in Q3FY24.
Also, read: Infosys adds 2,456 employees in Q2, reverses trend of past six quarters
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