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Narayana Murthy's Infosys gives BIG update on salary hike, says, ‘Next one we'll have to…’

The company said it is on track to hire 20,000 freshers this fiscal year, as announced earlier.

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Narayana Murthy's Infosys gives BIG update on salary hike, says, ‘Next one we'll have to…’

India's second-largest IT company, Infosys, which recently implemented a wage hike, has said that it has not decided on the next salary increment for its staff. Infosys's Chief Financial Officer (CFO), Jayesh Sanghrajka, said after the firm's Q1 FY26 results that the company had recently implemented a 'higher' variable pay component, which, when combined with the salary increase, has already impacted the company's margins by 100 basis points in the most recent quarter.

"In the margin of this quarter, we had 100 basis points of impact on account of the wage hike as well as the higher variable pay that we paid to our employees this quarter, so that's already done. Having done the wage hike very recently, you know, next one we'll have to decide when," he elaborated.

The salary hike at Infosys was introduced in two stages, the first of which began in January 2025 and the second of which began on April 1st, 2025.  Sanghrajka clarified: "We have already raised wages. The impact of the second phase of our hikes, which will begin on April 1, 2025, has already been incorporated. The first phase went into effect in January 2025.

With the attrition rate rising from 12.7% in June 2024 to 14.4% in June 2025, this action attempts to retain talent. The growing attrition rate is concerning since it shows how many workers decide to quit the organisation over 12 months, suggesting possible issues with market competition or employee happiness.

Total Headcount

For the quarter, the total headcount increased by 210 employees, bringing the workforce to 323,788—a 2.6% increase from the previous year.

As previously stated, the corporation stated that it is on target to hire 20,000 new hires this fiscal year.

With roughly 27.9% of total revenue in Q1 FY26, financial services continued to be the largest sector, followed by manufacturing (16.1%) and retail (13.4%).

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