When it comes to corporate updates that employees and industry watchers eagerly anticipate, Infosys doesn’t disappoint. The tech behemoth has officially announced a much-awaited salary hike, with increments ranging from 6-8%, starting January 1, 2025, and April 1, 2025, in a phased manner. Here’s everything you need to know about this move, which marks a significant step forward for the company and its employees after a period of delays.
Salary Hike in Two Phases: What to Expect
According to reports, the salary revision process, delayed in the past, is back on track. The phased rollout of increments is tied to Infosys’ performance appraisal cycle, which spanned September 2022 to October 2023. Employees have been eagerly awaiting these adjustments, especially since the last round of hikes occurred in November 2023.
Chief Financial Officer Jayesh Sanghrajka highlighted that the pay hikes will impact the company’s margins in Q4 FY25 and Q1 FY26, reflecting Infosys’ commitment to its workforce while balancing financial performance.
Infosys’ Financial Performance: Resilience Amid Challenges
Infosys has been a standout performer in India’s IT sector, showing remarkable growth despite global economic pressures. Here’s a snapshot of the company’s latest quarterly performance:
- Revenue Growth: 7.6% YoY to ₹41,764 crore in Q3 FY25, up from ₹38,821 crore in the same quarter last year.
- Net Profit: ₹6,806 crore for the December quarter, marking a 4.6% increase.
This strong financial footing gives Infosys the confidence to move forward with salary revisions and aggressive hiring plans.
A Workforce on the Rise: Hiring Spree Continues
Infosys isn’t just focusing on salary hikes—it’s also growing its workforce at an impressive pace. In the October-December 2024 quarter, the company added 5,591 employees, bringing its total headcount to 323,379 by the end of September 2024.
Looking ahead, Infosys has set an ambitious hiring target for FY26, planning to onboard 20,000 freshers. Sanghrajka recently confirmed that the company is on track to meet its 15,000 fresher recruitment goal for FY25.
This aggressive recruitment strategy stands in contrast to HCLTech, one of Infosys’ major competitors, which scaled down its fresher hiring goal to 7,000 as part of its efficiency measures.
A History of Salary Adjustments at Infosys
Infosys hasn’t always followed a predictable pattern when it comes to salary revisions. Here’s a quick timeline:
- FY22: Salary hikes were put on hold to conserve cash amid uncertainty.
- October 2023: The appraisal process resumed, with employees receiving salary revision letters by December 2023.
- FY25: A structured, two-phase hike will restore normalcy in compensation cycles.
By returning to a consistent schedule, Infosys aims to build employee trust and morale.
What This Means for Employees and the Industry
The resumption of salary hikes sends a clear message: Infosys is investing in its people. This move not only boosts employee confidence but also sets the tone for competitors in the IT industry to follow suit. The company’s focus on balancing growth, profitability, and workforce expansion demonstrates its long-term vision in a challenging economic landscape.
Infosys Sets the Stage for 2025
Infosys’ decision to offer a 6-8% salary hike and ramp up hiring underscores its commitment to staying competitive while supporting its employees. With a robust financial performance, strong hiring momentum, and a phased approach to increments, the Bengaluru-based IT giant is making waves in the tech world.
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