Infosys announces up to 8% pay raise in two-phase rollout
BENGALURU, INDIA — Infosys, India’s second-largest IT services firm, confirmed that annual salary hike letters will be distributed before the end of March 2025.
Shaji Mathew, Chief Human Resources Officer, shared this update during a town hall meeting at the company’s Bengaluru campus.
Two-phase rollout based on job levels
The salary hikes will be rolled out in two phases:
- Job Level 5 (JL5) and below: Employees in this category, which includes software engineers, senior engineers, and consultants, will receive their revised pay retroactively from January 1, 2025.
- Job Level 6 (JL6) and above: Managers and senior-level employees will see their hikes take effect from April 1, 2025. For these employees, increments are also linked to revenue performance.
Mathew emphasized that the hikes are being finalized based on individual performance evaluations.
“Managers have already shared ratings with you based on your performance and evaluation criteria. That feedback has also been shared with us,” he said.
Expected hike percentages and global trends
Infosys CFO Jayesh Sanghrajka previously indicated that Indian employees could expect an average hike of 6-8%, with higher increments for top performers. Overseas employees will see more modest increases in line with earlier compensation reviews.
“Most of the employees will get a comp increase in Q4,” Sanghrajka stated during the company’s Q3 FY25 earnings announcement.
Resumption of regular appraisal cycles
This announcement marks a return to regular appraisal cycles for Infosys after disruptions in previous years due to global economic challenges. The last across-the-board salary hike was effective November 1, 2023, following a freeze on increments in FY22 to conserve cash.
The current hike corresponds to the appraisal cycle from September 2022 to October 2023. Although performance ratings were shared in December 2023, the distribution of hike letters faced delays.
Positive implications for employees and business growth
The phased rollout reflects Infosys’ commitment to aligning compensation with individual performance and business growth. By resuming its regular appraisal cycle, the company aims to retain talent and motivate its workforce amid improving market conditions.
