IT major Infosys to hike salaries by 5-8%
What's the story
India's second-largest software company, Infosys, will be handing out salary increment letters to its employees by the end of this month.
The average pay raise is expected to be between 5% and 8%, effective from April.
The move comes as IT companies are seeing a surge in demand and predicting an increase in budgets for the next fiscal year.
Promotions
Infosys begins issuing promotion letters
Along with the salary hikes, Infosys has also started issuing promotion letters in phases.
The first batch was handed out at the end of December, while another is expected to be released by February-end.
On January 16, the IT services giant had announced plans for an annual salary increase of 6-8% for its Indian employees from January 2025 onward.
Strategy
Phased salary revisions
Notably, the January hike is the first phase of Infosys's planned salary revisions. The second phase will begin 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," Jayesh Sanghrajka, CFO of Infosys, said.
The company employs over 3.23 lakh professionals worldwide.
Past increments
Last salary hike and future plans
Infosys had earlier implemented pay hikes in November 2023, but deferred annual wage increments to the fourth quarter of the current financial year (Q4 FY25).
"Most employees will see their salary increases in the fourth quarter," CEO Salil Parekh had said. He had also noted that high performers would get much higher raises.
This announcement comes as IT firms start recovering after a tough period of weak discretionary spending and macroeconomic uncertainties.