Infosys Temporarily Halts Salary Hike; Delay in Salary Hike for Second Consecutive Year; Employees Express Strong Disappointment!

Infosys Temporarily Halts Salary Hike; Delay in Salary Hike for Second Consecutive Year; Employees Express Strong Disappointment!

Infosys has decided to delay salary hikes for its employees until the fourth quarter of the 2024-25 financial year.

Bengaluru: Infosys co-founder N. R. Narayana Murthy recently made headlines with his statement that Indians should work up to 70 hours a week to drive the country’s development. Now, Infosys is in the news regarding salary hikes.

The main takeaway from the news is that Infosys employees are facing a major setback in terms of salary hikes.

Infosys has decided to postpone salary hikes until the fourth quarter of the 2024-25 financial year, deviating from the traditional practice of implementing salary hikes at the beginning of the year, as reported by media outlets.

Reports suggest that the delay in salary hikes is due to global economic uncertainty and a slow demand in the IT sector.

According to media reports, delaying the salary hikes could lead to higher attrition rates, but if salary hikes were implemented, they might negatively impact the company’s profitability, leaving the company in a difficult situation.

Infosys

Mysuru: A leopard sighting at the Infosys campus; employees instructed to work from home.

Infosys has decided to postpone salary hikes for employees until the fourth quarter of the financial year 2024-25, breaking its tradition of implementing hikes at the beginning of the year.#NarayanaMurthy #Infosys pic.twitter.com/g75974Di7f

— Anku Chahar (@anku_chahar) January 11, 2025

Reason Behind Delay in Salary Hike:

Global economic uncertainty is said to be a major factor behind the delay in salary hikes, reflecting the challenges facing the IT sector. Indian IT companies are facing reduced spending by clients on non-essential services, and in response, they are taking cost-cutting measures.

Notably, Infosys has not implemented any salary hike since the one that took place in November 2023.

While Narayana Murthy expressed the opinion that young people should work 70 hours a week, the company’s decision to delay salary hikes has sparked renewed discussions on social media, with some criticisms directed at him.

According to reports, not only Infosys but other major IT companies, such as HCL Tech, LTI Mindtree, and L&T Technology Services, have also decided to delay salary hikes. In the tough business environment, these companies are adopting such measures to maintain profitability.

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