Infosys releases salary hike letters; top performers get up to 20% raise

Infosys has sent out salary hikes to its employees based on their performance, reports Economic Times. Most employees received an increase between 5% and 8%, while top performers were rewarded with a higher raise. The salary revision applies to employees at two job levels. Those in Job Level 5, which includes team leaders and lower positions, will receive the pay hike retroactively from January 1, 2024. Meanwhile, employees at Job Level 6, who are managers below the vice president level, will get their revised salaries starting from April 1, 2024.

The company categorized employees into three performance levels. Those who "met expectations" received a salary increase of 5-7%, while employees with "commendable performance" got a hike of 7-10%. A smaller group of "outstanding performers" saw increments ranging from 10-20%. However, employees rated under the "needs improvement" category did not receive any salary hike.
Compared to the last salary revision in November 2023, the recent hikes are 5-10% lower across different performance categories. The company had also announced a reduction in performance-based bonuses last week, following a similar downward trend.

Many employees had expected a bigger salary hike. One employee told the publication that on such days, their MS Teams group chats are usually filled with discussions, but this time, the groups remained quiet, indicating possible disappointment. However, employees also acknowledged that the IT industry is currently facing a challenging phase.
Infosys had last increased salaries with effect from November 1, 2023. The company had previously frozen salary hikes in 2022 to conserve cash but resumed its annual appraisal cycle starting in October 2023.
In the October-December quarter, Infosys reported strong financial results. The company’s net profit increased by 11.4% to $800 million, while revenue grew by 7.6% to $4.9 billion compared to the same period last year. Despite industry challenges, Infosys continues to maintain steady growth and expansion.