One of India’s largest IT firms, Infosys, announced an annual pay hike of 6% to 8% for their employees across India from January 1, 2025. The announcement, made by Infosys Chief Financial Officer Jayesh Sanghrajka during the company’s Q3FY25 results briefing, brings extremely needed relief to its workers of over 3.23 lakh professionals. Because of the global economic uncertainties and the problem of income in the coming expenditure, this news has been welcomed quite well
Details of the Salary Hike:
- The pay hike is part of the company’s phase-wise pay revision, which will be implemented in two phases. The first phase, which will begin from January 2025, will focus on employees in India, while the second phase, scheduled for April 2025, will target other regions.
- Employees outside India can expect a pay hike of low single-digit, while top performers on the global stage will get higher compensation schemes. Sanghrajka emphasized that the scheme is in line with the previous patterns and will be competitive.
- CEO Salil Parekh of Impossible revealed that those delivering high performance will benefit from significant hikes. “Most employees will see a pay hike in the fourth quarter, “Parekh said during talks with analysts. While the company did not reveal the exact marginal impact of these hikes, it did admit that they could bring “some headwinds” in Q4FY25 and Q1FY26.
Delay in Wage Revisions
Traditionally, Infosys introduces pay revision at the beginning of the financial year. However, the delay in 2024 reflects the challenges facing the IT sector. Reduced prudent spending, delay in client budgets and severe global economic conditions have impacted the financial dynamics of the industry. Infosys’s decision to defer pay hike reflects the company’s understanding in dealing with these difficulties.
Infosys Reports Strong Q3FY25 Performance, Revises Growth Outlook Upward
- Despite these challenges, Infosys posted a strong performance in Q3FY25. The company recorded net profit growth of 11.4% year-on-year to ₹6,806 crore as compared to ₹6,106 crore in the same quarter last year. Revenue from operations also grew by 7.5% to ₹41,764 crore.
- Encouraged by these results, Infosys raised its continuous currency (CHC) national growth guidance for FY25 to 4.5-5% from the earlier estimate of 3.75-4.5%. This was the third consecutive quarter in which growth was revised, indicating strong business momentum.
- The CEO Salil Parekh delivered strong results to Infosys’ various digital initiatives and strategic initiatives. He said, “Our strong state-wise growth, along with strong industrial units and margins, in a seasonally weak time, reflect the criticality of our market situation.”
Hiring Trends and Future Outlook
Apart from the salary hike, Infosys has shown a positive hiring spirit. The company added 5,591 employees in Q3FY25, taking its total employee strength to 3,23,379. Infosys plans to add 15,000 more employees in the current financial year and raise this target to 20,000 next fiscal year, reflecting its commitment to talent acquisition and retention.
Outcome
The announcement of the salary hike by Infosys is a welcome move for employees, especially after a year without a pay hike due to financial uncertainty. Along with the company’s strong financial performance, robust recruitment plans, and further adjustments to growth projections, this decision reflects Infosys’ resilience and confidence in its future. By supporting its employees and focusing strategically on growth, Infosys continues to strengthen its position as a leader in the global IT industry. The upcoming pay hike reflects the company’s commitment to its employees, ensuring motivation and stability amid challenging times.
