Information technology (IT) major Infosys will give an annual salary hike of around 6 per cent to its employees in India. Those located at in-client geographies are likely to get a raise between 1 and 1.5 per cent for the current year.
The Bengaluru-headquartered firm, which is facing a higher attrition rate in recent years, will roll out these salary hikes for 85 per cent of its employees, effective from April. These employees are in junior to middle management roles.
“We are repeating what we did last year. For about 85 per cent of our workforce, (who are in) the junior-to-middle management level, the wage hike will be effective from April 1. For the senior level (employees), it will be effective from July-August,” Pravin Rao, chief operating officer, Infosys, said. “The average wage hike in India will be 6 per cent, and outside, (it) will be 1-1.5 per cent.”
To contain the higher attrition rate, the firm will provide a higher raise to the staff at the lower level. For the quarter ended March, the overall attrition for the company remained at 20.4 per cent — a rise of 50 basis points (bps) over the preceding quarter. “Overall attrition remains high, and we are continuing our focus on arresting the same,” Rao added.
Infosys’ larger competitor — TCS — has also announced a salary hike in the range of 2-6 per cent, depending on the geographies where they are based out of.