India’s second-largest IT company Infosys will be rolling out its salary hikes from November 1. The company’s Chief Financial Officer Nilanjan Roy announced the same during the company’s second quarter earnings call.
More recently, during a companywide town hall, the IT giant’s HR head Shaji Mathew said that tenured employees and high performers would be the focus of the upcoming compensation review cycle at Infosys. This means that along with high performers, the company will also be rewarding employees for their loyalty to the company this year. Tenured employees are those who have spent a certain number of years with the company.
After deferring for nearly two quarters, Infosys is rolling out hikes from November. The company normally announces salary hikes in June/July, and they are effective from April. The company so far did not clarify if this means that the cycle has been changed.
In an investor call post Q2 earnings, Chief Financial Officer Nilanjan Roy noted that the wage hike was deferred to counter the inefficiencies in the company. He said that such steps have improved the company’s margins by 50 basis points. “Like I said, we had a good quarter two. And as I explained in my margin walk, we nearly had a 50 basis points improvement from our project Maximus on cost optimization,” the CFO said.
“And that gives us comfort for the rest of the year and of course a much longer program, which will take not only this year into next year as well. We also realise that we have apparent inefficiencies. Our utilisation is still low. So these will go and help us and, of course, offset the wage hikes, etc.,” he added.
TCS first to roll out hikes
Tata Consultancy Services, the largest IT company, was the first to say that it rolled out hikes in the first quarter of the fiscal year 2024. The company has reportedly given 12-15 percent for top performers.
Wipro, which deferred hikes from second quarter to third quarter is likely to roll out salary hikes effective from December 1.
More recently, during a companywide town hall, the IT giant’s HR head Shaji Mathew said that tenured employees and high performers would be the focus of the upcoming compensation review cycle at Infosys. This means that along with high performers, the company will also be rewarding employees for their loyalty to the company this year. Tenured employees are those who have spent a certain number of years with the company.
After deferring for nearly two quarters, Infosys is rolling out hikes from November. The company normally announces salary hikes in June/July, and they are effective from April. The company so far did not clarify if this means that the cycle has been changed.
In an investor call post Q2 earnings, Chief Financial Officer Nilanjan Roy noted that the wage hike was deferred to counter the inefficiencies in the company. He said that such steps have improved the company’s margins by 50 basis points. “Like I said, we had a good quarter two. And as I explained in my margin walk, we nearly had a 50 basis points improvement from our project Maximus on cost optimization,” the CFO said.
“And that gives us comfort for the rest of the year and of course a much longer program, which will take not only this year into next year as well. We also realise that we have apparent inefficiencies. Our utilisation is still low. So these will go and help us and, of course, offset the wage hikes, etc.,” he added.
TCS first to roll out hikes
Tata Consultancy Services, the largest IT company, was the first to say that it rolled out hikes in the first quarter of the fiscal year 2024. The company has reportedly given 12-15 percent for top performers.
Wipro, which deferred hikes from second quarter to third quarter is likely to roll out salary hikes effective from December 1.
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