Narayana Murthy’s Infosys makes BIG announcement about salary hike, set to affect over 2000000 employees

Infosys stated that it will implement annual salary increases of 6-8 percent for its employees in India, effective January 2025.

Infosys co-founder Narayana Murthy recently made headlines with his comments on work-life balance. Speaking at the CNBC Global Leadership Summit, Murthy advocated for a 70-hour workweek, suggesting it was crucial for India’s economic growth. His remarks, however, attracted significant criticism, with many questioning the practicality and impact of such long working hours on personal well-being and work-life balance. Narayana Murthy’s Infosys announces a major salary hike, impacting over 2,00,000 employees. The decision marks a significant move for the IT giant, boosting employee pay scales.

Narayana Murthy’s Infosys makes BIG announcement about salary hike, set to affect over 2000000 employees

Earlier on Thursday, Infosys stated that it will implement annual salary increases of 6-8 percent for its employees in India, effective January 2025. As per the News18 report, this marks the first phase of the company’s planned salary revisions under the leadership of N R Narayana Murthy, with a second phase set for April 2025. Employees based outside of India are expected to receive modest single-digit increments.

During a press briefing following the company’s Q3FY25 results announcement, Infosys Chief Financial Officer Jayesh Sanghrajka was quoted as saying by News18, “Broadly, the comp (annual salary increment) that we are expecting is 6-8 per cent in India, and the overseas comps will be in line with the earlier comp reviews.”

The IT giant based in Bengaluru, employing over 3.23 lakh professionals, had earlier delayed its annual wage hikes to the fourth quarter of the current financial year. The most recent salary revision took place in November 2023.

While Infosys did not specify the exact margin impact of the salary hikes, Sanghrajka warned that the revisions could lead to “some headwinds” in the final quarter of FY25 and the first quarter of FY26.

Usually implemented earlier in the fiscal year, the delay in wage hikes highlights the challenges posed by global economic uncertainties and declining discretionary IT spending. Companies in the industry have been facing delayed client budgets and reduced expenditures, adding strain to their financial performance.