Infosys Ltd, India’s second-largest information technology (IT) services company has deferred annual wage hikes to the fourth quarter of the financial year 2024-25, Moneycontrol reported.
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Usually the wage hikes are implemented earlier in the year, and the postponement reflects the uncertainty in global demand for IT services, delayed client budgets, and macroeconomic uncertainties, according to the report.
HT cannot independently verify this information.
Infosys is not the only tech major to have deferred wage hikes. Rivals like HCLTech, LTIMindtree, and L&T Tech Services have also reportedly skipped salary increments for the second quarter in order to deal with costs.
However, certain teams such as those related to artificial intelligence (AI) do continue to offer hikes selectively for top performers, as each unit has an individual budget to do that, according to the report.
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On top of this, the stagnancy of the IT job market has also given the companies confidence that withholding hikes is unlikely to lead to resignations, the report cited analysts as saying.
Infosys had said on October 17 that it was “planning” wage hikes in the fourth quarter in a phased manner.
“Some part of that will be effective in January and the balance will be effective in April,” the report quoted chief financial officer (CFO) Jayesh Sanghrajka as having said during a press conference after the second quarter results.
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At that time, the company’s net profit increased by 2.2% quarter-on-quarter to ₹6,506 crore, which missed expectations, according to the report.
