India's second-largest IT services provider, Infosys, is set to roll out its annual salary increments for over 3.23 lakh employees. According to a report by Moneycontrol, the increment letters will be issued in phases, with the first hikes expected by the end of February. The average increase will range between 5-8%.
If Infosys proceeds with the reported plan, it would be a month later than what its CFO, Jayesh Sanghrajka, had mentioned during the company's third-quarter earnings call in January.
"Our wage rollout—compensation rollout—is going to happen in two phases. The first phase will start on January 1, and the second phase will begin on April 1. The average wage increase in India will be between 6% and 8%, with high performers receiving significantly higher raises," Sanghrajka said during a conference call on January 16.
He further added that overseas Infosys employees would receive low single-digit salary hikes.
Salary Hike As IT Spending Rise
The IT services giant is increasing salaries as it expects businesses to ramp up technology spending, Moneycontrol reported.
Infosys had paused annual increments in the financial year 2022-23 due to a global slowdown in discretionary spending after the COVID-19 pandemic. The company resumed increments a year later, with employees receiving salary hikes from November 1, 2023.
During the recent quarterly earnings call, Infosys’ CFO said, "We are seeing a revival in growth driven by strong holiday season sales and improving consumer sentiment. At this point, we are noticing renewed interest from clients in terms of spending, which should ideally translate into growth in the coming quarters."
In FY25, Infosys is set to hire over 15,000 freshers, and for the next year, the company expects to hire more than 20,000 freshers.
Meanwhile, the firm has been under fire from workers' rights bodies after firing a batch of new recruits earlier last week from its Mysuru Campus. The Nascent Information Technology Employees Senate (NITES) has filed a complaint against Infosys for "forcibly" removing over 700 freshers without notice. It has filed a complaint with the Ministry of Labour and Employment over what they call an "illegal and unethical" process.
Infosys said that these freshers were given "three attempts" to clear an assessment, failing which they were terminated.
