The long wait for salary hikes for 3.23 lakh employees of Infosys is about to end. The information technology services giant has announced that it will offer 6-8% salary raise for its employees in India and the process will begin in January 2025. The last time the employees of Infosys got a salary hike was way back in November 2023.
It has been announced that while the first phase of increments will be offered in January, the next phase will be offered in April 2025. “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 at an event to announce the Q3 financial results of the company.
Increment for Infosys employees located abroad
It was also announced that employees of the company located outside India will get lower, single-digit increments. Predictably, since business is not particularly bright for the company, the hikes will have some impact on profit margins which wasn’t revealed by the company management. However, CFO Sanghrajka cautioned of “headwinds” in Q4FY25 (January-March 2025) and Q1FY26 (April-June 2025) on account of these wage increase.
Though the extent of salary increment did not seem anything substantial, Infosys CEO Salil Parekh highlighted that high-performing employees would receive more substantial increments. On the financials front, Infosys announced a 11.4% increase year-on-year rise in PAT in Q3 FY25. The PAT stood at Rs 6,806 crore. The amount of revenue from operations also was recorded at Rs Rs 41,764 crore against Rs 38,821 crore in the same period last year — a rise of 7.5%.
Stock movement after Q3 results
Though the numbers looked impressive, investors gave a thumbs down to the Infosys stock. The company’s shares dived 5.71% and touched a low of Rs 1816.10. Explaining the movement, Sharekhan mentioned, “Infosys: Though the FY25 revenue guidance has been revised upward, it implies minus 2.2 per cent to minus 0.2 per cent QoQ growth in CC for Q4, indicating a potential revenue decline due to seasonality, fewer working days and drop-in third-party revenue seen in Q3.”
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