Infy hands out salary revision letters to employees, hikes effective Nov 1

Infosys handed out salary revision letters to many of its employees on Friday after a delay of several months. The move comes after Infosys’ outgoing CFO Nilanjan Roy announced during Q2 earnings that the company will be rolling out wage hikes effective November 1.

Traditionally, Infosys rolls out its annual salary hikes for employees below the senior management in April, with other people in the organisation receiving their share of hikes in July. This year, the company had postponed the salary increments as the industry has been facing headwinds due to a slowdown in the macro-economic environment.

Some employees have indicated that the average salary hikes range from below 10 per cent to low double digits, which is not unusual.      

In general, salary hikes at IT companies have taken a back seat as revenue growth has been hit due to a slowdown in demand triggered by delayed decision making by clients and cutting down on discretionary spending. This slowdown has also led Infosys to lower its FY24 revenue growth guidance to 1.0 – 2.5 per cent in constant currency from 1-3.5 per cent it had guided earlier.

Accenture, for instance, will not be giving salary hikes to its employees in India and Sri Lanka this year, except in critical skill areas and where it is legally mandated. The decision comes at a time when Accenture has guided a muted revenue growth guidance of -2 to 2 per cent for Q1 FY24. Accenture follows the September-August fiscal year. In March 2023, Accenture announced it was laying off 19,000 employees.

Wipro earlier said it will begin implementing annual merit pay increases (MSI) for its staff on December 1 after deferring the hikes by a quarter due to macroeconomic concerns and margin constraints.