Bengaluru-based IT giant Infosys is set to begin rolling out pay hike letters to its employees starting in February 2025.
This move comes as a welcome announcement for employees who have been eagerly awaiting their salary revisions.
The pay hikes will be effective retrospectively from January 1, 2025. They will cover the appraisal period from September 2022 to October 2023.
Infosys Pay Hike Details
Employees falling at job level five (JL5) and below will receive their hike letters in February.
Those at JL6 and above will get their letters in March, with the hike taking effect from April.
This phased approach ensures that most employees will receive their pay hikes around the anniversary of their appraisal period.
The last increase in compensation was effective November 1, 2023, and the company had frozen salary hikes in FY2022 to conserve cash.
The pay hike initiative is expected to boost employee morale and satisfaction, especially after a challenging period marked by global economic uncertainties.
Infosys had previously delayed its salary hikes due to these uncertainties, but the company is now in a better position to reward its employees.
The hike for employees at JL6 and above is also linked to revenues, providing an additional incentive for performance.
Company’s Financial Health
Infosys’ decision to roll out pay hikes is supported by its strong financial performance.
The company registered a nearly five percent increase in its net profit in the second quarter of 2024.
The rupee fall is likely to aid margins, helping the company remain steady despite soft revenues due to seasonality factors.
Large deal ramp-ups are also expected to support the company’s financial health.
Infosys CFO’s Statement and Employee Reactions
Infosys CFO Jayesh Sanghrajka had previously mentioned that the pay hike would be in two phases. Junior employees would receive it in January, and the rest in April.
This approach aligns with the company’s strategy to ensure that most employees receive their hikes around the anniversary of their appraisal period.
Jayesh also highlighted that the company had increased its variable pay within the quarter, adding another layer of financial reward for employees.
Employees have welcomed the news of the pay hikes, expressing relief and gratitude for the company’s recognition of their hard work and dedication.
The announcement has also sparked discussions about the importance of fair compensation.
It has highlighted the impact of salary revisions on employee retention and motivation.
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