Infosys To Roll Out Salary Hikes, Promotions Effective January
Infosys Ltd. will resume salary increments and promotions from 2021—a practice it had put on hold due to uncertainties amid Covid-19.
“Employees have been a critical part of our success,” said Chief Operating Officer Pravin Rao in a media statement. “As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective Jan. 1.”
Infosys, in April, had suspended promotions and pay hikes as business slowed down amid the pandemic, but it promised to honour all job offers that were rolled out.
The focus of the wage hikes and promotion will be more on junior employees, Chief Executive Officer Salil Parekh said in a press briefing, without elaborating the details. The wage hikes, promotions and fresh hiring will impact margin in the quarter ending December, said Chief Financial Officer Nilanjan Roy.
The information technology firm's profit jumped 13.72% to Rs 4,858 crore in the quarter ended September, while its margin expanded to 25.3% from 22.7%. Infosys now expects revenue to grow 2-3% in the financial year ending March 2021, higher than 0-2% forecast earlier. It has also raised operating margin guidance to 23-24% from 21-23%.
Infosys had 2.4 lakh employees as on Sept. 30, with total headcount largely unchanged from end-June. A year ago, the Bengaluru-based firm had 2.36 lakh employees.
Voluntary attrition in IT services declined to 7.8% on an annualised basis from 18.3% in the quarter ended June, and 11.7% in the three months to September 2019.
Last week, Infosys' rival Tata Consultancy Services Ltd. had also resumed hiring and salary hikes effective Oct. 1.