Bengaluru: IT services company Infosys has decided to postpone salary hikes for employees below the senior management level, according to a report in Moneycontrol.
Typically, these salary increments are implemented from April each year.,
The report said that many employees in the software major have confirmed that eligible employees have not yet received their revised salaries, which are usually expected in the first quarter of the financial year, specifically in June.
The deferral of salary hikes has reportedly affected many employees at Infosys.
This lack of information has left employees unsure of when they can expect to receive the salary hike that was initially scheduled for the first quarter of the financial year.
The report emphasizes that the decision by Infosys to defer salary hikes is a response to the challenging conditions faced by the IT sector, primarily due to the ongoing macroeconomic circumstances.
It is worth noting that this is the first time since 2020 that Infosys has opted to defer salary hikes.
In the previous year, the company deferred the pay hikes in light of the Covid-19 outbreak and the need for cash conservation amid the pandemic.
However, once the situation improved and stabilized, Infosys proceeded with implementing the salary hikes in January of the subsequent year.
During the Annual General Meeting last month, Infosys CEO Salil Parekh hoped that the company would be able to decrease attrition rates.
What we have seen over the last four quarters, Q4 and before, attrition has steadily been coming down each quarter on a quarterly basis. We see a lot of the initiatives that weve put in place, and also the overall economic environment, both of them relating to the attrition coming down, our employee engagement scores are continuing to go up and we believe that with that we will have a good control on attrition in the coming quarters, he said.
