Infosys is all set to begin the rollout of annual pay hikes starting in February, adhering to CFO Jayesh Sanghrajka’s “anniversary” timeline. As reported by Economic Times, Employees at job level five (JL5) will receive their letters in February, with the raise effective retrospectively from January 1. Employees at JL6 and above will receive their letters in March, with the pay raise becoming effective in April. A senior executive shared this information at an Infosys Validation Services (IVS) unit town hall.
Track leads at JL5, including software engineers, senior engineers, system engineers, and consultants, will be among the first to benefit. Managers, senior managers, delivery managers, and senior delivery managers at JL6 and above, excluding vice presidents, will receive their increases later.
The pay hike is for the appraisal period from September 2022 to October 2023, for which eligible employees received their rating letters in December 2023. Unlike previous years, where hike letters were disbursed in June for July effective hikes, the timeline was adjusted due to unforeseen circumstances in 2024.
The last compensation increase was effective November 1, 2023. Despite not responding to requests for comments as the company is in a silent period ahead of its third-quarter results announcement on January 16, it is anticipated that the rupee’s fall will aid Infosys’ margins, although revenues remain soft due to seasonality factors.
The decision to implement pay hikes in two phases aligns with Sanghrajka’s previous statements during the October earnings call. He mentioned that junior employees would receive hikes in January, with the remaining employees in April, marking a nearly “anniversary” implementation strategy.
Additionally, Infosys provided 85% average performance bonus payout to its eligible employees for the second quarter ending September 2024, slightly higher than the June quarter’s 80% payout. The company had frozen salary hikes in FY2022 to conserve cash but resumed its annual appraisal cycle in October 2023, issuing salary revision letters in December 2023.
