In a strategic move reflecting broader market trends, Infosys has decided to defer its annual employee pay hikes, which were initially scheduled to take effect earlier in the fiscal year.
According to recent reports, the salary increments will now be implemented in the fourth quarter of the 2024-2025 financial year, citing ongoing global economic challenges and delayed budgets from clients.
This move comes as part of the company’s cautious approach to managing operational costs during a period of economic uncertainty, particularly as several major clients have put a hold on budget approvals.
Infosys has informed its employees that the pay raises will be phased, with some employees receiving increments in January 2025, while others will see changes in April 2025.
This decision follows the company’s last round of salary hikes in November 2023, marking a significant delay in this year’s pay adjustments.
Infosys is not alone in making this move. Other prominent IT firms, such as HCLTech, LTIMindtree, and L&T Technology Services, have also postponed salary increments in response to similar financial pressures.
The deferred pay hikes are expected to impact employees across various sectors of the company, with some employees expressing concerns over the delay.
Despite the temporary postponement, analysts believe that the move will have minimal impact on employee retention, noting that the current stagnation in the IT job market has reduced the likelihood of mass resignations.
In the wake of this news, experts anticipate that the focus on cost management and budgetary adjustments will remain a key theme for major IT firms in the coming months.
Infosys, a global leader in technology consulting and services, has long been a bellwether for the Indian IT sector, and this delay in pay hikes highlights the ongoing pressures faced by the industry.
As economic conditions remain unpredictable, the decision is seen as a prudent step in ensuring the company’s financial health while navigating a challenging global landscape.
The company has reassured employees that it is closely monitoring the situation and remains committed to rewarding and retaining its talent, particularly once the economic environment stabilizes.
As Infosys and other IT firms adjust their strategies, the industry will be watching closely for any further changes in compensation and employee retention plans.
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