Two top IT majors have deferred salary hikes for employees amid the ongoing slowdown in the sector as clients are cutting discretionary spending.
Infosys has reportedly decided to defer salary hikes for all its employees below the senior management level that are otherwise rolled out from April every year.
According to a Moneycontrol report, multiple employees have confirmed that they have not received their pay hike due for the June quarter. The report further stated that they have also received no intimation on the delay or when they are likely to receive their pay increases.
Infosys typically rolls out hikes for its senior management in July, but so far, they have not received any communication on the matter, the report said.
HCLTech, too, has deferred salary hikes for their employees by one quarter. “In the past couple of years, the hiring that we have done and the compensation revision that we have done…we have taken that into consideration and taken a decision to defer our annual salary review by a quarter,” said Ramachandran Sundararajan, chief people officer, HCLTech.
On the contrary, Tata Consultancy Services (TCS), India’s largest IT services firm, has gone ahead and rolled out its annual salary increase with effect from April 1, 2023, taking a 200-basis point hit on its operating margins. TCS has rolled out an average hike of 6-8 per cent, while high performers and exceptional performers have received hikes in the range of 8-10 per cent and 12-15 per cent, respectively.
First Published: Jul 12 2023 | 8:55 PM IST