Infosys, a prominent IT services company based in Bengaluru, has reportedly decided to postpone salary hikes for employees below the senior management level. This move comes as a response to the challenging conditions faced by the IT sector, primarily due to the ongoing macroeconomic circumstances. Typically, salary increments are implemented from April each year. However, many employees at Infosys have confirmed that they have not yet received their revised salaries, which are usually expected in the first quarter of the financial year, specifically in June.
The deferral of salary hikes has caused uncertainty among employees who were expecting the salary hike in the first quarter. The report highlights that this is the first time since 2020 that Infosys has opted to defer salary hikes. Last year, the company postponed the pay hikes due to the impact of the Covid-19 outbreak and the need for cash conservation during the pandemic. However, once the situation improved, Infosys proceeded with implementing the salary hikes in January of the following year.
During the recent Annual General Meeting, Infosys CEO Salil Parekh expressed optimism about reducing attrition rates. He noted that attrition has been steadily decreasing over the past four quarters, and the company’s initiatives and the overall economic environment have contributed to improving employee engagement scores. Parekh believes that these efforts will help control attrition in the coming quarters.
Overall, Infosys’ decision to defer salary hikes for non-senior management employees reflects the challenges faced by the IT sector and the company’s commitment to navigating these circumstances while ensuring employee engagement and stability.
