India’s second-biggest I.T. services giant, Infosys, delayed its annual pay increment to Q4 FY 25. The last salary increment took place in November 2023. This delay in wage hikes suggests ongoing challenges caused by the volatile global market, especially in the I.T. services domain. Not only Infosys but other I.T. giants are postponing wage increment moves. Let’s explore this topic in detail.
Table of Contents
Infosys deferred pay increment.
As Moneyconrol reported on Monday, Infosys, India’s well-known I.T. service provider, has deferred its annual salary hike to the fourth quarter of the Financial Year 2025. while last time, the company raised its yearly salary in November 2023.
Not only Infosys but also its competitors and one of the best I.T. service providers of India such as HCLTech, LTIMindtree, and L&T Tech Services have also differed their salary hikes to the second quarter in order to maintain profitability.
This delay in annual salary increments among India’s top I.T. service providers is an indication of an uncertainty in global demand, most likely for I.T. services. The current challenges in front of these I.T. giants are low discretionary spending, weak client suggestions, and macroeconomic volatility.
Reported further stated, “Enfosys was planning on October 17 to hike wages in Q4 in a phased manner”. “Some part of that will be effective in January, and the balance will be effective in April,” Chief Financial Officer (CFO) Jayesh Sanghrajka said after the Q2 result.
Why Infosys and its competitors deferred salary increments.
Infosys and its major competitors are delaying their wage increments for several reasons. As there it’s predicted an uncertain global market, especially in I.T. services. Currently, Infosys and other companies have several challenges to deal with like low discretionary spending, weak client budgets, and macroeconomic volatility.
So, to maintain the organization’s profitability, I.T. giants are delaying hikes in their annual wages.
Infosys’s November performance bonus.
In November, Infosys rewarded performance bonuses to eligible employees for Q2 of FY 2025, as Times of India reported. An 80% bonus was distributed with November salaries, which varied according to the individual’s performance in Q2. Primarily aimed at mid- and junior-level staff in delivery and sales roles, this incentive was determined to benefit a significant portion of Infosys’ 3.15 lakh strong workforce.
Mint reported on January 2, 2025, that TCS, Infosys, and HCL Technologies are predicted to see constant currency revenue growth of 0.4%, 1.0%, and 3.7% on a sequential basis. According to Mint, for Q3FY25, Infosys is expected to report revenue of 0.1% on a quarter-on-quarter basis due to seasonal furloughs, and the I.T. giant is expected to maintain its guidance of 3.75 percent to 4.5 percent for the entire year.
According to Motilal Oswal brokerage firm’s analysts’ prediction, “Company’s H2 expected to perform weaker than H1 as growth was partially front-ended. The operating margin is expected to fall by 30 bps owing to furloughs. This will be offset by tailwinds from pricing improvements, sub-contract cost optimization, and Project Maximus.
Infosys’s salary hikes to begin January 2025.
According to a Times of India report, Infosys CEO Salil Parekh announced that salary hikes will begin selectively from January 2025, extending to all employees by April 2025. This follows a freeze on hikes in FY22 and a delayed appraisal cycle in FY24.
Read This Also: Manu Bhaker’s net worth boosted 20x after the Paris Olympics win, know her current and old net worth and more.
Disclaimer: If you have any recommendations regarding this article please let us know. We are open to hearing that and implementing it ASAP.
