World
India
Infosys has rolled out salary hike letters for its employees, offering performance-based increases. According to a report by Economic Times, most employees will see salary increments ranging from 5% to 8%, with top performers earning up to 20%. This move marks a significant development in the company’s salary revision process, which will be applied across two job levels.
Salary Hike Breakdown: Performance-Based Increases
The salary revision affects employees in Job Level 5 and Job Level 6. Employees in Job Level 5, including team leaders and those in lower positions, will receive their pay hike retroactively from January 1, 2024. Meanwhile, those in Job Level 6, such as managers below the vice president level, will see their revised salaries beginning April 1, 2024.
Different Hike Percentages for Varying Performance Ratings
Infosys has categorized its employees into three performance levels, with salary hikes adjusted accordingly:
- Met Expectations: Employees in this category will see an increase of 5-7%.
- Commendable Performance: Employees in this group will receive a 7-10% raise.
- Outstanding Performers: The top performers will be rewarded with a 10-20% salary increase.
However, employees rated as “Needs Improvement” will not receive any salary hike.
Lower Hikes Compared to Previous Salary Revision
Compared to the November 2023 salary revision, the recent hikes are lower by 5-10% across the different performance categories. In addition, Infosys also announced a reduction in performance-based bonuses last week, following a similar trend of reduced compensation adjustments.
Employee Reactions: Mixed Feelings About Salary Hikes
While many employees were expecting a more significant salary hike, some expressed disappointment at the lower-than-expected increases. One employee shared with Economic Times that normally, their MS Teams group chats would be buzzing with discussions on salary hikes, but this time, the chats were unusually quiet, hinting at possible dissatisfaction. However, some employees also acknowledged the current challenges in the IT industry, which may have influenced the company’s decision to offer more conservative raises.
Infosys’ Financial Performance
Infosys had previously increased salaries starting from November 1, 2023, after a freeze in 2022 to conserve cash. Despite facing challenges in the IT sector, Infosys continues to show steady growth. In the October-December 2023 quarter, the company reported strong financial results, with a net profit increase of 11.4% to $800 million, and a revenue growth of 7.6% to $4.9 billion compared to the same period last year.
A Balancing Act Amidst Industry Challenges
While Infosys’ salary hikes and performance bonuses may not meet all employees’ expectations, the company continues to demonstrate solid financial health. As the IT industry navigates a challenging phase, Infosys remains committed to maintaining steady growth while ensuring its workforce is appropriately rewarded for their performance.
ALSO READ: Groom Garlands the Wrong Woman, What Happened Next?
