Starting February 24, 2025, Infosys, one of India’s leading IT giants, started rolling out salary hikes as per reports. The increments were decided based on employee performance reviews, which led to massive discussions.
The hikes will be calculated for employees in Job Level 5, which includes lower-level employees and team leaders, starting in January 2025. In contrast, Job Level 6 employees, including managers up to the vice-presidential level, will see a change in their compensation from April 2025.
Deciding the increments
Infosys divided its employees into four categories based on their performance reviews for its increment cycle. Any employee who “met expectations” has been given a 5-7% hike of their base salary. Workers whose performance was deemed “commendable” had their salary increased by 7-10%.
A 10-20% salary hike has also been awarded to those who received the rare “outstanding” rating in their reviews. In contrast, the employees whose performance seemed to need improvement saw no increase in their compensation.
Infosys employees have expected salary hikes after the organization announced on January 16, 202, that it would roll out 6-8% annual salary hikes for its Indian employees.
“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 had shared during the announcements of the third quarter results of the organization.
On February 12, 2025, Moneycontrol reported that the average salary increase for Infosys employees was expected to be 5-8%. The report also suggested that the offers would be rolled out in late February.
Increments amid a crisis
Compared to Infosys’ last increment cycle, which took place in November 2023, the latest hikes are reportedly 5-10% less. This comes shortly after Infosys’ announcement in mid-February 2025, which stated that the organization would be reducing its performance-based bonuses.
Infosys is far from the only IT organization in India whose recent salary hikes have not met expectations. Many other organizations have announced a delay in their increment cycles, except Tata Consultancy Services (TCS).
This downward trend in increments can be attributed to recent challenges within the IT industry, which have reduced revenue for most IT organizations.
Among the 3,23,000 employees who work for Infosys in India, the latest salary hikes have sent a wave of disappointment. Many employees had hoped for a higher increase, but the reality of the challenges that the industry is currently facing is also something that the workers have acknowledged.
Given that Infosys had to freeze its increment cycle altogether in 2022, the recent hikes do indicate a positive trend for the company’s revenue and the compensation for its employees. In the October-December quarter of 2024, Infosys saw an increase of 11.4% in its net profit, which amounted to around $800 million. Its revenue increased by 7.6% for the same duration to $4.9 billion.
Presently, Infosys seems intent on increasing its workforce, having announced its plan to add 15,000 freshers to its workforce in 2025 and 20,000 in 2026. Given the organization’s latest measures toward cost reductions, the plans have generated some skepticism. However, the organization remains optimistic about its plans and the expected results.
