Infosys may announce a hike for its employees in India and overseas, claim report, citing sources from the company.
Infosys, India’s second-largest IT services firm, has announced plans to issue annual compensation revision letters to employees before the end of March. This decision, shared during a town hall at the Infosys campus in Bengaluru, as per the feedback from delivery units and performance evaluations, according to the Economic Times report.
Hike Based On Job Levels & Timeline
The same report claimed that employees at Job Level 5 (JL5) and below, including software engineers, senior engineers, system engineers, and consultants, will see pay hikes effective January 1, 2024.
Whereas employees at Job Level 6 (JL6) and above, which includes managers, senior managers, delivery managers, and senior delivery managers (excluding vice presidents), will receive revised salaries effective April 1, 2024.
The managers have already communicated individual performance ratings to employees. These ratings, along with performance evaluations, will determine the percentage increase for each employee.
Rollout In Two Phases
The company will implement the hikes in two phases first from January 1, 2024, for JL5 and below and another from April 1, 2024, for JL6 and above.
Infosys Compensation Trends
Infosys previously revised salaries in November 2023, following a freeze in FY2022 aimed at conserving cash. The last appraisal cycle began in October 2023, with salary revision letters issued in December 2023 for the September 2022–October 2023 performance period.
For this year, hikes for Indian employees are expected to be in the range of 6-8%, while overseas employees are likely to see low single-digit increases. High performers will receive higher increments, Chief Financial Officer Jayesh Sanghrajka said during the company’s recent earnings announcement.
Revenue-Linked Hikes for Senior Employees
Hikes for employees at JL6 and above will be tied to revenue performance, according to the report. Infosys reported better-than-expected financial results for the October–December 2023 period, with an 11.4% rise in net profit and a 7.6% increase in revenue compared to the previous year.