Infosys announces Salary Increment from Jan 2021, 100% Variable Pay, Special Bonus in Dec Quarter
India’s 2nd largest IT services firm, Infosys has announced to roll out 100% variable pay in the July-September quarter along with a one-time special incentive to junior-level employees for the Q2. And the company will also be giving out salary increases and promotions across all levels effective January 1, 2021.
Salil Parekh, CEO & MD of Infosys said that the company will pay a special bonus in the quarter to December while paying 100% variable pay in the previous quarter.
“Our 2nd quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues”, said Salil Parekh
“Increase in revenue and margin outlook for FY 21 is due to the continued trust clients have in us. I am extremely proud of our team for achieving these results in challenging business conditions globally,” he added.
The announcement from Infosys comes on the back of the company registering a 20.5% growth in net profit at Rs 4,845 crore for the second quarter of FY21, as compared to the same quarter last year. Revenues grew by 2.2% on a constant currency basis, with digital revenues coming in at $1,568 million, accounting for 47.3% of Infosys’ business. Operating margins came in at 25.4%, an increase of 370 basis points year-on-year.
“The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $ 3.15 bn, and attrition reducing to single digits. Employees have been a critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective Jan 1st,” Pravin Rao, COO of Infosys said in a statement.
Salary hikes will be identical to previous years. Infosys paid 6% to over 85% of its employees in 2019. Voluntary attrition was at 7.8%, the lowest among many quarters. Employee count stood at 2,40,208 people.
Infosys said the demand for its services has been increasing as clients spend more on technology.