Infosys employees CHEERS! Narayana Murthy’s company rolls out annual salary hikes for…, top performers to…

The recent salary increases at Infosys are reportedly 5-10% lower across all performance categories compared to the previous pay revision in November 2023.

Infosys employees finally have something to cheer about as the IT giant has begun implementing its long-awaited annual salary hikes, effective from February 24. According to a Moneycontrol report citing insider sources, the salary revisions range from 5 to 8 per cent, with top performers receiving hikes of up to 10-12 per cent.

As India’s second-largest IT services firm, Infosys boasts a market capitalization of Rs. 7.32 lakh crore. The latest salary hike applies to employees in Job Levels 5 and 6 (JL5 and JL6). Those in JL5, which includes team leaders and junior-level positions, will see their revised salaries applied retroactively from January 1, 2024. Meanwhile, JL6 employees—typically managers below the vice president level—will have their pay hikes take effect from April 1, 2024.

Infosys evaluates employee performance across four categories: outstanding, commendable, met expectations, and needs improvement. Employees rated as having “met expectations” received a raise between 5-7 per cent, while those classified under “commendable performance” secured hikes between 7-10%. The most outstanding performers enjoyed salary increases ranging from 10-20%. However, employees in the needs improvement category were not given any raises.

The recent salary increases at Infosys are reportedly 5-10% lower across all performance categories compared to the previous pay revision in November 2023. Additionally, the company’s variable pay or performance bonus has also been reduced by a similar margin, aligning with the ongoing industry slowdown.

This salary revision follows a recent move by Infosys to cut performance-based bonuses, mirroring a broader industry trend. The company, which employs over 3.23 lakh professionals, last revised salaries in November 2023.

Employees were expecting better hikes

“On a day like this, our MS Teams communicator groups are usually buzzing with chats. The groups have gone quiet this time as they probably expected a bigger hike. We are, of course, also aware the industry is passing through a challenging phase,” an employee told ET.

Last month, Infosys Chief Financial Officer Jayesh Sanghrajka mentioned that the company was planning a salary increase of 6-8% for employees in India. He added that top performers would receive significantly higher increments, while salary hikes for overseas employees would remain in the low single digits.