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Infosys Salary Hike: The pay increment, set to take effect in January 2025, marks the first phase of the company’s planned salary revisions, with the second phase scheduled for April 2025.
Infosys employs over 3.23 lakh professionals.
Infosys Salary Hike: Infosys, one of India’s leading IT companies, announced on Thursday that it will implement annual salary hikes of 6-8 per cent for employees in India. The pay increments, set to take effect in January 2025, mark the first phase of N R Narayana Murthy-led company’s planned salary revisions, with the second phase scheduled for April 2025. Employees outside India are likely to receive low single-digit increments.
“Broadly, the comp (annual salary increment) that we are expecting is 6-8 per cent in India, and the overseas comps will be in line with the earlier comp reviews,” Infosys Chief Financial Officer Jayesh Sanghrajka said on Thursday, during a press briefing following the announcement of the company’s Q3FY25 results.
The Bengaluru-based IT major, which employs over 3.23 lakh professionals, had previously postponed its annual wage hikes to the fourth quarter of the current financial year. The last salary revision was implemented in November 2023.
Typically rolled out earlier in the fiscal year, the delay in wage hikes underscores the challenges posed by global economic uncertainties and reduced discretionary IT spending. Companies in the sector have been grappling with delayed client budgets and weak spending, which have added pressure to their financial operations.
Although Infosys did not provide an exact figure for the margin impact of the salary hikes, Sanghrajka cautioned that the revisions could result in “some headwinds” in the final quarter of FY25 and the first quarter of FY26.
The company clarified that the upcoming wage increases would align with previous salary reviews. Employees outside India can expect low single-digit increments, while top performers globally are set to receive higher compensation adjustments. “Of course, high performers would receive much higher hikes, et cetera. Most employees will see their salary increases in the fourth quarter,” said CEO Salil Parekh in an analyst call following the results.
Infosys’ Strong Q3FY25 Performance
Despite the challenges, Infosys reported an 11.4 per cent year-on-year rise in its net profit for Q3FY25 at Rs 6,806 crore, compared with Rs 6,106 crore in the same quarter last year. The results exceeded Street expectations.
The company’s revenue from operations during October-December 2024 also saw a 7.5 per cent year-on-year increase to Rs 41,764 crore, against Rs 38,821 crore in the year-ago period.
Infosys also raised its CC revenue growth guidance for FY25 to 4.5-5 per cent for the third quarter in a row, as against its previous guidance of 3.75-4.5 per cent.
