Indian IT giant Infosys has decided to postpone its annual salary hikes to the fourth quarter of the 2024-25 fiscal year (January-March 2025). This delay comes amid global economic uncertainties and muted demand for IT services, particularly in discretionary spending areas.
The Bengaluru-based company last implemented salary hikes in November 2023. Typically, wage increases are rolled out earlier in the year. However, the delay reflects challenges faced by the IT sector, including tightened client budgets and macroeconomic pressures.
IT Sector Under Pressure
Infosys is not alone in deferring salary hikes. Other leading players, such as L&T Tech Services, LTIMindtree, and HCL Tech, have also skipped wage increases in the second quarter of this fiscal year. The trend highlights cost-cutting efforts across the industry to maintain profitability amid slowing demand and rampant layoffs in the global tech sector.
Phased Wage Hikes Planned
On October 17, 2024, Infosys announced plans for phased salary hikes starting in January 2025, with some increases extending into April. Jayesh Sanghrajka, the company’s Chief Financial Officer, confirmed the timeline during a press conference after Infosys released its July-September quarter results.
Quarterly Performance
Despite the challenges, Infosys reported a 2.2% sequential rise in net profit, reaching ₹6,506 crore in the second quarter. The company’s profit margins improved by 10 basis points, driven by reduced onsite costs, better resource utilisation, and operational efficiencies.
The delay in salary hikes signals caution within the IT sector as companies navigate uncertain economic conditions and strive to balance employee satisfaction with financial stability.
