Infosys usually rolls out hikes in June by sending revision letters for increments effective from April. However, this system was not followed in 2024 for the appraisal cycle of September 2022-October 2023
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India’s largest IT services firm Infosys has announced that it will roll out annual salary hikes starting as soon as February.
People familiar with the developments told the Economic Times that the company’s chief human resources officer told employees that “those falling at and below job level five (JL5) will receive hikes with effect from January 1 and those at job level six (JL6) and above will get the revised pay from April.”
He added that managers have already shared their ratings based on the performance and evaluation criteria of the employees and that feedback on the same has been shared with HR. “We are working on the percentage of hikes based on individual evaluation,” the HR officer said.
Who will benefit from this hike?
Track leads at JL5, including software engineers, senior engineers, system engineers, and consultants, will be the first to receive salary increases.
Managers, senior managers, delivery managers, and senior delivery managers at JL6 and above, except for vice presidents, will receive their raises at a later stage.
Infosys usually rolls out hikes in June by sending revision letters for increments effective from April. However, this system was not followed in 2024 for the appraisal cycle of September 2022-October 2023.
Meanwhile, the last time employees received a hiked salary was on November 1, 2023.
In the fiscal year 2021-2022 (FY2022), Infosys froze salary hikes to conserve cash. The company resumed its annual appraisal cycle in October 2023, issuing salary revision letters in December 2023.
Is the IT job market looking up?
The news of salary increments has certainly brought a smile to Infosys workers and brought a ray of hope for employees across the IT job market.
The IT sector, which is on the path of recovery, is expected to witness 15-20 per cent growth in job opportunities across various industries in 2025, talent solutions company NLB Services said last year in December.
The IT industry has gained back momentum in H2 2024 and is gearing up for a promising 2025 on multiple fronts.
Fresher hiring in the Indian IT sector is poised for significant growth, with an anticipated increase of 15-20 per cent in job opportunities across various industries.
At the same time, the demand for highly specialised tech roles, including artificial intelligence, machine learning (ML), data analytics, and cloud technologies, is expected to surge by 30-35 per cent, driven by the increasing reliance on emerging technologies, it said.
TCS to cut variable pay
At the same time, Tata Consultancy Services (TCS) has announced that it will slash variable for senior employees of the company for the second quarter straight, according to a report by Moneycontrol.
In the July-September quarter, some employees received only 20-40 per cent of their quarterly variable allowances (QVA), while others received none. This was significantly lower compared to the QVA disbursed in Q1 FY25, which was nearly 70 per cent.
With inputs from agencies