India’s second-largest IT services company, Infosys, has initiated salary hikes for its employees, effective February 24, 2025.
The average increase ranges between 5% and 8%, with top performers receiving up to 20% increments.
The company classifies employee performance into four categories: outstanding, commendable, met expectations, and needs improvement.
Those rated as “met expectations” received 5-7% hikes, “commendable” performers were granted 7-10% increases, and “outstanding” performers received 10-20% raises. Employees in the “needs improvement” category did not receive any salary increment.
These salary revisions apply to employees at band JL6 and below, effective from April 1, 2025. This move comes after the company last implemented salary hikes in November 2023.
In its financial results for the third quarter ending December 31, 2024 (Q3 FY25), Infosys reported a net profit of ₹6,806 crore, marking an 11.4% increase from ₹6,106 crore in the same period the previous year. The company’s revenue for this quarter stood at ₹41,764 crore, reflecting a 7.6% year-on-year growth.
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The IT industry has experienced delays in salary revisions during FY25, with many major firms postponing wage hikes to protect profit margins amid a challenging economic environment and reduced discretionary spending by clients.
Despite these challenges, Infosys has proceeded with its salary increments, aiming to reward and retain talent within the organization.
To further support its employees, Infosys is reportedly offering allowances and additional benefits to those within the taxable income bracket, aiming to offset the impact of the current economic climate. The company continues to prioritize employee welfare while navigating the complexities of the global market.
