By India Today Business Desk: Infosys, one of India’s leading IT services companies, has decided to defer salary hikes for all its employees below the senior management level, according to a report in Moneycontrol. The hikes are rolled out from April every year.
The report claimed that multiple employees of the software major have confirmed that many eligible for a pay hike have not received their revised salaries which usually come in the first quarter (June) of a financial year.
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Employees have also expressed their lack of knowledge regarding when they can expect to receive the salary increase, as no official communication has been issued on the matter.
The report highlights that this decision reflects the challenging conditions faced by the IT sector due to the prevailing macroeconomic circumstances.
This marks the first instance since 2020 that Infosys has chosen to defer salary hikes. Previously, in 2020, the company had deferred the pay hikes due to the Covid-19 outbreak and the cash conservation that occurred due to the pandemic.
However, the company rolled out the hike in January next year when the situation came under control.
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It is also to be noted that Infosys is scheduled to release its first-quarter results on July 20 and expectations indicate a subdued quarter for the tech major.
Throughout the fiscal year, Infosys has witnessed revenue growth ranging from 4 per cent to 7 per cent, which represents the first time since the 2018 financial year that the company’s revenue has fallen within this range.
In the last quarter of the 2023 financial year, Infosys reduced its variable payout by approximately 60 per cent across the organisation. However, the final variable payout varies depending on factors such as the employee’s unit or department and pay grade.
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During the Annual General Meeting last month, Infosys CEO Salil Parekh expressed optimism about the company’s efforts to decrease attrition rates.
“What we have seen over the last four quarters, Q4 and before, attrition has steadily been coming down each quarter on a quarterly basis. We see a lot of the initiatives that we’ve put in place, and also the overall economic environment, both of them relating to the attrition coming down, our employee engagement scores are continuing to go up and we believe that with that we will have a good control on attrition in the coming quarters,” he said.