Infosys to begin fresh appraisal cycle; last year hikes still pending

Citing macroeconomic conditions, many IT companies have opted to hand out small increment or defer salary hikes this year

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Infosys is set to initiate a new appraisal cycle for the ongoing financial year; however, some employees remain uncertain about what to expect as they are still awaiting salary hikes from the previous year's performance review cycle, according to a report by the Economic Times.

 

In one of the largest IT firms in the country, the performance evaluation of employees occurs between October and September. This process includes a self-evaluation, which is due this year on September 29, followed by a manager's evaluation, expected to be completed by the end of October. The final ratings are then communicated to employees, anticipated this year to be by the first week of December. Salary increases are usually implemented in the June or July salaries of the corresponding year.

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Four employees expressed concerns to the Economic Times about pending salary hikes from the last performance cycle, which spanned October 2021 to September 2022. There is uncertainty regarding whether these pending hikes will be integrated into the upcoming cycle or if they will be overlooked.

 

During the first-quarter earnings conference, the company's Chief Financial Officer, Nilanjan Roy, stated that annual salary increases were under consideration. The Indian IT industry has been grappling with challenges owing to global macroeconomic conditions affecting technology spending. Infosys had previously frozen salary hikes in 2020 but resumed them in January 2021.

 

As reported by Business Standard earlier this year, many IT companies have either provided modest increments, postponed raises or deferred hikes entirely. Tech Mahindra deferred the salaries of senior-level employees, and HCL Tech chose not to implement raises at all. Wipro plans to announce its salary increments, if any, in the October to December quarter, whereas last year, the announcement came in September.

Also Read: Infosys partners with Microsoft to accelerate adoption of GenAI
 

In contrast, Tata Consultancy Services announced annual salary hikes for financial year 23 from April, offering an average increase of six to eight per cent, and 12 to 15 per cent for exceptional performers.