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Infosys delays employee salary hikes amidst economic stress

Date: July 12, 2023 Pooja Sharma Pooja Sharma
Infosys delays employee salary hikes amidst economic stress 
The Indian IT giant Infosys has reportedly delayed salary hikes for its non-senior management employees, on account of the challenges faced by companies in the current macroeconomic climate, with project cancellations and downsizing becoming more prevalent.



Employees familiar with the situation have confirmed that they did not receive their expected pay raises during the June quarter (Q1). They have not been informed about the delay or when they can expect their salary increases.



The company typically rolls out salary hikes for senior management in July, but as of now, no communication has been made regarding their hikes. It remains uncertain whether their salary increments have also been deferred.



Infosys is scheduled to release its first-quarter financial results on July 20, and it is expected to be a subdued quarter. The company has projected a revenue growth of 4-7% for the full fiscal year 2024, marking the first time since fiscal year 2018 that their revenue falls within this guided range.



In the fourth quarter of fiscal year 2023, Infosys reduced its variable payout to an average of 60% across the organization. An email sent to employees during that time explained that the fourth quarter was impacted by a volatile market and unforeseen events. The email encouraged employees to remain committed to navigating the changing business landscape as a united group.



The Chief Executive Officer of Infosys, Salil Parekh, stated during the company's Annual General Meeting that the overall demand environment has shifted. He also mentioned that attrition has steadily decreased over the past four quarters and expressed optimism that their initiatives and the improving economic environment would help control attrition in the upcoming quarters.



In the past, Infosys froze salary hikes in 2020 due to the financial uncertainties caused by the pandemic. However, they resumed the practice in January 2021.



 



Source credit: https://www.moneycontrol.com/news/business/infosys-defers-pay-hikes-to-employees-10941981.html

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Pooja Sharma

Pursuing her professional career as a content writer for over two years now, Pooja Sharma is endowed with a post-graduate degree in English Literature. The articles that she writes are a balanced blend of her ever-growing love of language and the technical expertise that she has gained over the years. Currently Pooja pens insightful articles for Newsorigins and numerous other websites, covering subjects such as business, finance, and technology.