Infosys is reportedly gearing up to offer a salary hike of between 6 to 8 per cent to its employees. The increments are set to be rolled out in two phases, starting from January 1, 2025, and April 1, 2025. According to a report, the IT giant is resuming its salary revision process after previous delays. Jayesh Sanghrajka, the Chief Financial Officer of Infosys, indicated that these salary hikes are likely to impact the company’s margins in the last quarter of FY25 and the first quarter of FY26. The raises are tied to the performance appraisal cycle, which covered the period from September 2022 to October 2023.
Eligible employees received their performance ratings in December 2023, though the increments, which usually take effect from July, were delayed last year. The previous round of salary revisions was implemented in November 2023. It is worth noting that this isn’t the first time Infosys has adjusted its salary hike timelines. In FY22, Infosys had put a hold on salary hikes to conserve cash, but it resumed its appraisal process in October 2023. Employees received their salary revision letters by December 2023, restoring the company’s standard review and compensation procedure. Meanwhile, the Bengaluru-based company saw its workforce grow, with a net addition of 5,591 employees during the October-December 2024 quarter, raising its total headcount to 323,379 by the end of September 2024. Infosys also recorded a net profit of Rs 6,806 crore for the December quarter of FY25, reflecting a 4.6 per cent increase, showing resilience despite industry challenges.
Besides, it was recently reported that Infosys plans to hire more than 20,000 freshers in FY26, as the company is trying to fulfill demand and a revival in discretionary spending across industries, according to Chief Financial Officer Jayesh Sanghrajka. Speaking on January 16, Sanghrajka mentioned that the company is on track to meet its target of recruiting around 15,000 freshers by the end of FY25. This hiring strategy contrasts with HCLTech, a major competitor, which recently cut its fresher hiring goal from 10,000 to 7,000 due to efforts to boost efficiency through measures like Project Ascend. Infosys recently added 5,591 employees in the third quarter ending December 31, marking the second quarter in a row of positive headcount growth. “We have had strong hiring in Q3, with expansion of over 5,000 employees. We see (hiring) based on some our discretionary (spending), this will continue. But this will have seasonality as we see in our revenue,” Salil Parekh, CEO and MD, Infosys said.
