Infosys has surprised its workforce by announcing salary hikes for many of its employees, marking a departure from the usual industry practice.
Infosys has decided to implement these salary hikes starting from November 1, 2023, though the industry typically sees such revisions taking effect from April 1. However, it's worth noting that entry-level employees are excluded from this revision, and a report by ET indicates that the average salary hike this time around is anticipated to be below 10%.
This delay in implementing salary hikes serves as an indicator of the pressures that companies like Infosys are currently facing. The sector has been witnessing a slowdown in project activities, leading to a reconsideration of the usual timeline for compensation reviews, reported Money Control.
In a communication reviewed by ET, Infosys expressed appreciation, stating, "We are pleased to revise your compensation in acknowledgement of your commitment and performance with effect from November 1, 2023." This move arrives amidst a backdrop of the IT sector contending with sluggish demand for technology services on a global scale.
The average hike this time could range from single-digit increases to low-double digits, positioning this move as a strategic initiative by Infosys to boost employee morale in the face of industry challenges.
Notably, these salary revision letters were distributed a day before Infosys' highly anticipated 'Stellar Saturday Culture Carnival' event scheduled for December 16, set to take place across its various campuses in India.
Infosys' usual timeline for compensation reviews, typically announced in June with retrospective effect from April 1, was delayed this year by the company's management. During the earnings conference after the first quarter, Infosys CFO Nilanjan Roy hinted at the possibility of annual hikes, stating that their rollout was under "active consideration."
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