Infosys distributes employee salary revision letters, hikes effective Nov 1

Infosys distributes employee salary revision letters, hikes effective Nov 1

Infosys handed out salary revision letters to many of its employees on Friday after a delay of several months. This comes after Infosys’ outgoing CFO Nilanjan Roy announced during Q2 earnings that the company will be rolling out wage hikes effective November 1.

Traditionally, Infosys rolls out its annual salary hikes for employees below the senior management in April, with other people in the organisation receiving their share of hikes in July.

The IT major postponed the salary increments as the industry has been facing headwinds due to a slowdown in the macroeconomic environment.

  • Hampered momentum. Hiring of freshers by Indian IT sector to slow down

Infosys’ salary hike percentage is below 10 per cent, and several employees have reportedly received hikes in the single digits, according to news reports.

Salary hikes at IT companies have taken a back seat as revenue growth has been hit due to a slowdown in demand triggered by delayed decision-making by clients and cutting down on discretionary spending.

IT major Infosys has trimmed its FY24 guidance from 1-3.5 per cent to 1-2.5 per cent as woes of reduction in discretionary spending and delay in decision-making persist amid uncertain macro-environment.

Infosys’ total headcount fell by 7,530 employees, higher than last quarter, from 3,36,294 in Q1 to 3,28,764 in Q2. Voluntary attrition during the quarter fell to 14.6 per cent from 17.3 per cent last quarter.

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