Infosys plans 5-8% salary hikes, to issue increment letters by Feb-end: Report

The pay increases, effective from April, come as the demand environment improves, with IT companies expecting higher technology budgets in the next fiscal year.

The company has also begun issuing promotion letters in batches, with the first round sent in December and another scheduled for February-end, the report said.

Infosys, India’s second-largest IT services provider, reported an 11.5% rise in consolidated net profit to ₹6,806 crore for the October-December quarter, compared to ₹6,106 crore in the year-ago period. Operating profit for the quarter rose 11.9% year-on-year to ₹8,912 crore.

On January 16, Infosys announced plans to roll out 6%-8% annual salary hikes for its Indian workforce starting January 2025.

“Broadly, the comp (annual salary increment) that we are expecting is 6-8% in India, and the overseas comps will be in line with the earlier comp reviews,” Chief Financial Officer Jayesh Sanghrajka said during the company’s third-quarter earnings call.

The discretionary spending, particularly in North America, is picking up after two years of subdued investment in transformative projects, according to the report.

Rival firms such as HCLTech, LTIMindtree, and L&T Technology Services have skipped increments in recent quarters to maintain profitability. Analysts say the stagnant job market has allowed IT companies to defer salary hikes without much risk of attrition, though selective raises are being granted to top performers in critical areas like artificial intelligence.