Infosys Salary Hike: Infosys has postponed the salary hike for the financial year 2025 till the fourth quarter of the current financial year. Earlier, the salary hike of the employees was done in November 2023.
Infosys Salary Hike: The ongoing crisis in the IT sector does not seem to end soon. Infosys, the country’s second largest IT company, has decided to postpone the annual increment in the salary of the employees. According to the news published in Moneycontrol, the salary hike has been postponed till the fourth quarter of the financial year 2025. Earlier, the salary change was done by the company in November 2023. This delay, unlike the trend of salary hikes at the beginning of the year, can be gauged from the fact that the IT sector is facing challenges due to instability in the global market.
These companies also postponed salary hike
Many big IT companies like HCL Tech, LTIMindtree and L&T Technology Services have also postponed the salary hike of employees. This was done because their customers also have low budgets and are spending very cautiously. Apart from this, the economic conditions around the world are not good. Companies are trying to avoid salary hikes as it will help them maintain profits and rein in expenses. However, there is no update in this regard from the country’s largest IT company TCS.
Salary hike will be implemented systematically
Infosys had already said that the salary hike will be implemented systematically. The company’s CFO Jayesh Sanghrajka said that some employees will get salary hike from January, while the rest of the employees will get salary hike in April 2025. Infosys has reported a marginal profit of 2.2 percent in the second quarter. The company’s total profit was Rs 6,506 crore, which was less than market expectations. However, the company improved its profit margin slightly. This has been possible due to low cost, resource utilization and better functioning.
Pressure on the company’s profit margin may increase
However, the salary has not been revised yet. Still, experts of Motilal Oswal Financial Services believe that the pressure on the company’s profit margin may increase in the December quarter. The main reason for this is less work on working days due to holidays. However, the potential reduction in profit margins can be minimized due to reasons like better pricing, reduction in subcontractor expenses and Infosys’ cost-efficiency initiative, Project Maximus.
Project Maximus aims to increase operation profitability. Margin management has become an important part of Infosys’ strategy. From the point of view of employees, the job market is stable at present. Therefore, the concern of attrition due to delay in salary hike has reduced. Employees who perform well in certain areas such as artificial intelligence are still being given salary hikes, as retaining talent in these areas is very important.
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