For the first time, IT services firm LTIMindtree will require project leads, managers, and lead architects to take a coding and math test for their annual salary hike, reported Mint. The score from the test will be considered alongside project performance during the appraisal.
Last year, LTIMindtree delayed its salary hike until October and reportedly gave out an average 4% raise. According to the company's quarterly reports, this impacted their EBIT margins, which fell from 15.5% to 13.8%. Outgoing CEO Debashis Chatterjee stated that margin recovery may take longer due to current growth conditions.
IT services giant TCS is set to offer an average salary hike of 4%-8% in March for FY25, down from the 9% increase given in FY24, as reported by The Economic Times.
Wipro implemented merit-based salary hikes in September for FY25, with top performers receiving an average 8% increase, as per ET.
Infosys employees saw a 5%-7% salary hike this year, down from 7%-9% in FY24 and significantly lower than the 10.5% increase in FY22, which followed the post-COVID boom, reported MoneyControl.
HCLTech employees also saw minimal salary hikes in FY25, with most receiving increments of just 1-2%. This reflects the broader trend of cost-cutting and cautious spending in the IT sector.
The EY Future of Pay 2025 report forecasts a slight dip in IT sector salary hikes, dropping from 9.8% in 2024 to 9.6% in 2025, with IT-enabled services declining from 9.2% to 9%. This slowdown is driven by automation and cost optimisation, as per the report.
The EY report forecasts 6%-7% IT sector growth in 2025, driven by global trends and tech challenges. Kotak Institutional Equities has also warned of a 1%-2% revenue dip, with growth at 6%-7% in FY26 and 8%-9% in FY27.
