Infosys, a leading IT services provider, plans to issue salary increment letters by the end of February, with increases ranging from 5% to 8%. These changes will take effect in April 2025.
Since December, the company has begun issuing promotion letters in batches, indicating a strategic response to an expected increase in technology budgets for the coming fiscal year.
This decision comes as the demand environment improves, with Infosys positioning itself to capitalise on the expected increase in IT spending, Moneycontrol reported.
"Broadly, the comp (annual salary increment) that we are expecting is 6-8% in India, and the overseas comps will be in line with the earlier comp reviews," Infosys' Chief Financial Officer Jayesh Sanghrajka said in a press conference following the Q3FY25 results.
In a contrasting development, Infosys has received criticism for laying off nearly 700 freshers from its Mysuru campus.
These employees, who had only been with the company for a few months since their onboarding in September 2024, were reportedly fired in what Harpreet Singh Saluja, president of the IT employees' union NITES, described as "a shocking and unethical move".
The union claimed that "bouncers and security personnel" were deployed during the termination process, which sparked widespread criticism. The layoffs have sparked widespread outrage on social media, with users expressing both sympathy and anger about the unexpected job losses.
One user described the situation as "truly heartbreaking," pointing out that many freshers had waited more than two years after graduation to join Infosys, only to be laid off after six months. Another post referred to the scene as "the most devastating photo in recent times," emphasizing the emotional impact on those who had relied on one of India's largest IT firms to launch their careers.
Delays in onboarding processes have become a major issue in the Indian IT sector, with many companies struggling to match hiring with changing market demands. This has resulted in lengthy wait times for new hires, exacerbating the uncertainty experienced by recent graduates.
