Infosys rolls out long-delayed salary hikes with up to 12% raises for top performers

India’s third-largest IT services firm, Infosys, has begun implementing long-awaited salary hikes, with increments ranging from 5% to 8%.

As per news reports, exceptional performers have received even steeper raises, in the range of 10% to 12%, as the company moves forward with its phased salary revision plan.

The Bengaluru-headquartered IT giant, which employs over 3.23 lakh professionals, had previously announced during its December quarterly results that its salary hikes would be rolled out in two phases. The first phase took effect on February 24, covering employees in band JL6 and below, while the second phase is scheduled for April 2025.

Performance-Based Increments Amid Delayed Wage Cycles

Infosys categorises employee performance into four tiers: outstanding, commendable, met expectations, and needs improvement.

As per the news portal Moneycontrol, which reported the news first, while average performers are receiving 5-8% hikes, those rated in the highest bracket are benefiting from significantly higher raises, which can go up to 12%.

This latest round of wage revisions comes at a time when the Indian IT sector is grappling with sluggish demand and cautious client spending, especially amidst geopolitical tensions. Unlike Tata Consultancy Services (TCS), which was one of the few top IT firms to proceed with timely salary hikes, many companies in the sector, including Infosys, opted to delay their increments.

This move, as explained by industry experts, was aimed at protecting profit margins amid an uncertain global economic outlook and a slowdown in discretionary IT spending.

Compensation Adjustments to Offset Lower Hikes

Infosys is also expected to offer allowances and additional benefits for employees in taxable income brackets to compensate for the lower hikes, the report claimed. This strategic move is designed to balance employee retention efforts with financial prudence in a challenging business environment.

Infosys last implemented salary hikes in November 2023. Speaking on the company’s financial outlook during the Q3 FY25 results announcement, Chief Financial Officer Jayesh Sanghrajka had indicated that the company would offer an average salary increment of 6-8% for its India-based workforce, while compensation adjustments for overseas employees would align with previous cycles.

Chief Executive Officer Salil Parekh had further confirmed that high-performing employees would see even larger raises, and that the majority of Infosys employees would receive their revised salaries by the fourth quarter.