Infosys, the prominent Bengaluru-based IT company, is reportedly implementing long-awaited salary hikes in a phased manner, with some employees expected to receive increments in January following the rollout to many in December.
According to The Times of India, sources suggest that certain business units are finalizing budgets, causing a delay in the salary hikes. Despite an email inquiry, Infosys has not responded as of the time of this report.
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The company declared that the salary hikes are effective from November 1, marking a departure from its usual practice of announcing hikes in June/July, effective from April. Shaji Mathew, Infosys’ HR head, emphasised in a recent town hall that tenured employees and high performers would be the focal point of the compensation review cycle.
The report added, Infosys has taken a selective approach to salary hikes, excluding juniors and mid-level employees onboarded after October 2021, as well as seniors who joined after October 2020, according to earlier reports.
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In the face of weakening global macroeconomic conditions and geopolitical events, the IT industry has experienced a downturn. IT companies have adjusted their hiring targets, with overall employee strength declining in some cases due to subdued hiring not compensating for departures.
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The anticipation of rising attrition rates led to over-hiring, but attrition levels have fallen significantly in the current business environment, diminishing the bargaining power of IT professionals. Infosys witnessed a nearly 50 per cent reduction in its attrition rate, dropping from 27.1 per cent to 14.6 per cent during the September quarter.
