Infosys is set to begin rolling out yearly pay increases in February as the country's second largest software exporter prepares to keep to its earlier pledge and start the New Year on a positive note for its employees.
Employees at job level five (JL5) will get letters in February, with the raise effective retrospectively from January 1. Those at JL6 and above will receive a letter in March, with the raise taking effect in April.
A senior management at the company communicated this information with staff at an Infosys Validation Services (IVS) town hall on Friday.
Track leads are at JL5, and those below include software engineers, senior engineers, system engineers, and consultants. Managers, senior managers, delivery managers, and senior delivery managers are all included in the JL6 level and above, although vice presidents are not.
The increase is for the assessment period from September 2022 to October 2023, with eligible employees receiving rating letters in December 2023. Employees typically receive hike letters in June for treks that begin in July, but this did not happen in 2024, according to individuals who declined to be identified.
The most recent compensation increase went into effect on November 1, 2023.
For Infosys, the rupee's depreciation is likely to assist margins remain stable while revenue remains modest owing to cyclical considerations. However, it will be supported by significant deal ramp-ups.
The pay rise implementation timeline is consistent with what Infosys CFO Jayesh Sanghrajka told analysts during the earnings call on October 17, and specifics are coming now. The CFO had stated that the increase will occur in two stages. The junior staff would receive it in January, and the rest in April. He stated that most employees should receive it in January.
"If you think about it, this is almost like an anniversary. So that's point one. Point number two: within this quarter, we have also boosted our variable compensation. So that is another element to consider," Sanghrajka told analysts following the July-September (Q2FY2025) results.
The software behemoth paid out an average performance bonus of 85% to qualifying employees for the second quarter of fiscal year 2024-25, which ended in September. The stated bonus payout was slightly higher than the 80% average payout in the June quarter, owing to the IT giant's excellent July-September growth quarter.
Infosys suspended salary increases in FY2022 to save money and began its yearly assessment cycle in October 2023, releasing a salary modification letter for the final salary cycle in December 2023.
