Infosys has deferred the salary hike to the fourth quarter of the current financial year (Q4FY25), a report in Moneycontrol said. India’s second-largest IT company last rolled out salary hikes in November 2023.
Usually, the hikes are rolled out earlier in the year, however, this time several other big IT companies like HCLTech, LTIMindtree, and L&T Tech Services also skipped salary increments in the second quarter to manage costs and sustain profitability.
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On October 17, the company announced its plans for phased wage hikes in Q4. “Some part of that will be effective in January and the balance will be effective in April,” Chief Financial Officer Jayesh Sanghrajka said during a press conference following the Q2 results.
In the second quarter, Infosys reported a net profit of Rs 6,506 crore, marking a 2.2% quarter-on-quarter increase but falling short of market expectations. The company’s margins improved by 10 basis points, driven by reduced onsite costs, higher utilisation rates, and enhanced operational efficiencies.
Infosys has revised its FY25 revenue guidance upward to 3.75-4.5%, an increase from the earlier projection of 3-4%.
Meanwhile, Infosys announced an average performance bonus of 90% to eligible employees for the July-September quarter of FY25 (Q2FY25). The bonus was disbursed with November-end salaries, primarily benefits mid-to-junior-level staff in delivery and sales units, which make up the majority of the company’s 3.15 lakh workforce.
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According to PTI, while the Bengaluru-based IT giant offers an average bonus of 90%, the actual percentage varies based on individual performance and contributions. This quarter’s bonus is slightly higher than the 80% average distributed during the April-June period (Q1FY25).
