HCL Technologies (HCLTech), a leading global IT services company, has made a significant announcement regarding salary hikes for its employees.
As of October 2024, the company is implementing a 7% salary increase across the board.
However, the real highlight lies in the additional rewards for top performers, who are set to receive raises of up to 12-15%.
HCLTech Salary Hike: Key Points
All HCLTech employees will receive a 7% base salary hike. Exceptional performers, as identified by the company, will enjoy even more substantial raises, ranging from 12% to 15%.
Ramachandran Sundararajan, HCLTech’s Chief People Officer, emphasized the importance of recognizing outstanding contributions and retaining top talent within the organization.
The decision to enhance salaries comes on the heels of an impressive 11% rise in net profit during the second quarter of FY24.
HCLTech’s revenue from operations also witnessed an 8.2% growth, reaching Rs 28,862 crore compared to the same period last year. Despite the salary hike, HCLTech expects only a minimal impact on its operating margins.
The company is actively working to offset any adverse effects through efficiency measures. As of Q2, HCLTech’s headcount stood at 218,621 employees.
The number of employees eligible for the salary increase will depend on the company’s review cycle and the proportion of lateral hires who become eligible after completing a year of service.
Wrapping Up!
While HCLTech’s 7% salary hike is commendable, it aligns with the broader industry trend of moderate increases. Companies are balancing cost optimization with the need to retain and attract skilled talent.
In FY24, Infosys, known for its higher average annual increments, saw average hikes fall to 9% compared to 14.6% in FY22. The trend continued from FY23, where the average hike was 9.9%.
TCS also reflected a similar trend. In FY24, they granted average hikes of 7-9%, down from 10.5% in FY22. Wipro employees experienced a median remuneration hike of 9.4% in FY24 compared to the previous year.
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