Infosys, India’s third-largest IT services company, has announced salary hikes for its employees, with increments ranging from 5% to 8% based on their base salary.
The salary hikes, which were rolled out on February 24, 2025, will be effective from April 1, 2025.
This move is part of the company’s annual appraisal cycle and aims to reward employees for their performance and contributions.
Infosys Chief Financial Officer Jayesh Sanghrajka stated that the company was considering a salary hike of 6-8% in India.
Higher performers will receive much larger increments.
Chief Executive Officer Salil Parekh added that most employees would see their salary increases in the fourth quarter.
Infosys Performance-Based Increments
The salary hikes apply to employees in band JL6 and below, which includes team leaders and managers below vice presidents.
Infosys evaluates its employees based on four performance categories: Outstanding, Commendable, Met Expectations, and Needs Improvement.
The company expects to give the most significant salary adjustments to employees in the highest performance tiers.
Exceptional performers, who fall into the “Outstanding” category, will receive salary hikes of about 10-12%.
Those in the “Commendable” category will see increments ranging from 7% to 10%. Employees who “Met Expectations” will receive a 5-7% raise.
Employees in the “Needs Improvement” category will not receive any salary increase.
To offset the impact of lower salary increments, Infosys is reportedly offering allowances.
Additionally, the company is providing benefits to employees in the taxable income bracket.
These benefits provide financial support to employees and adequately compensate them for their contributions.
Phased Implementation and Employee Reactions
Infosys announced plans to roll out 6-8% annual salary hikes for its employees in India, starting January 2025.
The company planned the hikes in phases, starting with the first phase in February. The second phase is set to start in April 2025.
This phased approach allows the company to manage its financial resources effectively. It rewards employees for their performance.
The announcement of the salary hikes has elicited mixed reactions from employees.
Some employees are pleased with the increments, while others expected higher raises due to the company’s performance and the challenging economic environment.
An employee mentioned that their MS Teams communicator groups, usually buzzing with chats on such occasions, have gone quiet this time.
The reason for this could be that employees probably expected a bigger hike.
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