Infosys has made it official - employees can look forward to salary hikes starting next week. The rollout is scheduled for November 1, just a stone's throw away. This significant decision comes after Infosys had deferred annual salary increments in response to business optimization measures, including the goal of addressing industry challenges.
What You Need to Know
- Infosys will be granting salary hikes on November 1.
- The company's Chief Human Resources Officer, Shaji Mathew, shared this exciting news during a town hall meeting.
- Wipro is also set to offer merit-based salary increases starting from December 1, a month later.
In a noteworthy development, Infosys has formally announced that its employees will receive salary hikes starting next week, with the rollout set for November 1. This decision was communicated during a company town hall meeting by Shaji Mathew, Infosys' Chief Human Resources Officer, as reported by MoneyControl. The move comes after a few months of deferring the annual salary increments, which is a deviation from Infosys' traditional practice of rolling out salary hikes for employees below senior management in April and for others in July.
This year, the delay in salary increments was a result of business optimization measures aimed at addressing industry challenges. During an investor call following the earnings report, Infosys' Chief Financial Officer, Nilanjan Roy, explained that the decision to delay salary hikes was made to address inefficiencies within the company. These measures have also contributed to a significant 50 basis points improvement in the company's margins.
According to Roy, "We had a successful second quarter. As I explained in my margin walk, we achieved nearly a 50 basis points improvement from our project Maximus on cost optimization." In addition to salary hikes, the company is actively working on reducing inefficiencies through initiatives such as improving utilization, reducing workforce size, and forgoing campus placement drives for the current year.
Infosys' decision to reinstate salary hikes is a significant one, especially given the consecutive three-quarter reduction in headcount, despite a declining attrition rate. The company is proactively focusing on enhancing utilization and making efficient use of its bench strength, though there are no immediate plans to return to campus recruitment.
In a related update, Wipro, another major player in the IT industry, has announced that merit-based salary increases will commence on December 1, a month from now. This decision follows Wipro's deferral of hikes from Q2 to Q3. Meanwhile, HCL Technologies has postponed hikes for junior employees by a quarter and announced its plans to skip them for senior employees in management.
Notably, Accenture recently informed employees that it won't provide salary hikes to its employees in India and Sri Lanka in 2023, with exceptions for cases where it's legally mandated or committed to in critical skill areas.
Infosys' move to reintroduce salary hikes could potentially have a ripple effect across the IT industry, as companies adapt to ongoing challenges in the sector's evolving landscape.
