Narayana Murthy's Infosys makes BIG announcement: Employees to receive salary hike of...

Infosys, one of India’s top IT companies, has announced annual salary hikes of 6-8% for employees in India. The pay increments will take effect in January 2025 as part of the company’s phased salary revision plan, with a second phase scheduled for April 2025. Employees based outside India will receive lower, single-digit increments.

Jayesh Sanghrajka, Infosys' Chief Financial Officer, shared the update during the company’s Q3FY25 results briefing. “Broadly, we expect 6-8% increments in India, and overseas adjustments will follow earlier patterns,” he said, according to News18.

Infosys, which employs over 3.23 lakh professionals, had delayed salary revisions to the fourth quarter of FY25 due to global economic uncertainties and reduced IT spending. The last hike was implemented in November 2023.

While the exact impact on profit margins wasn’t disclosed, Sanghrajka warned of possible “headwinds” in Q4FY25 and Q1FY26 due to the wage hikes. CEO Salil Parekh added that high-performing employees would receive more substantial increments.

Despite these challenges, Infosys reported a strong Q3FY25 performance, with a net profit of Rs 6,806 crore, a 11.4% increase year-on-year. Revenue from operations also grew by 7.5% to Rs 41,764 crore compared to Rs 38,821 crore in the same period last year.

Encouraged by this performance, Infosys raised its constant currency revenue growth guidance for FY25 to 4.5-5%, up from 3.75-4.5%.