Infosys will not give salary hike to all employees this year. Only eligible employees will get increased salary from October. The company will employ 20,000 freshers and Ashish Kumar Dash will become the new CEO in 2027.
New Delhi: GiveIndia’s second largest IT company Infosys has made a big announcement regarding its salary hike policy this year. This time the company will not give increment to all its employees. According to India Today report, only eligible employees will get the benefit of salary hike within the next two months. The company has made this announcement with the release of June quarter results.
Will get salary hike from October
Infosys Chief Executive Officer (CEO) Salil Parekh said that the annual salary hike will be implemented in installments. Most eligible employees will get increased salary by October, while some employees will get increment after that. However, the company has not told by what percentage the salary will be increased. Like previous years, this increase will be based on the performance and qualification of the employees.
Not everyone will benefit
Infosys has made it clear that the change in salary is only for ‘eligible’ employees. Although the company has not disclosed the eligibility criteria, but generally IT companies decide it on the basis of performance, job responsibility, period of service and business needs. According to reports, senior officers will not get a salary hike in October this year. He is expected to get increased salary in January 2027.
20,000 freshers will get jobs
Infosys is also focusing on incorporating new talent into the company. The company plans to hire 20,000 freshers in this business year. In the first quarter itself, the company has hired more than 4,000 freshers. However, there has been a slight decline in the total number of employees of the company during this period. As of June 30, the company had 3,28,062 employees, up from 3,28,594 at the end of March. At the same time, the rate of employees leaving the job has also increased from 12.6% to 13%.
New CEO announced
Infosys has also announced a major leadership change in the company. Ashish Kumar Dash, who is currently leading the energy business, has been made the new CEO-designate (future CEO). He will take over the post in April 2027 after the tenure of current CEO Salil Parekh ends. Meanwhile, the company has reduced its revenue growth forecast for this financial year to 3% from 3.5%.
Increased demand for AI services
Infosys’ earnings for the quarter ending June stood at Rs 48,211 crore, which is 14% more than last year. However, this is slightly below market expectations as many clients are reining in their spending due to changes in AI technology. At the same time, services based on Artificial Intelligence (AI) are becoming a major source of income for Infosys. The share of AI services was 5.5% in the December quarter, which has now increased to 8.2%. The company also said that it has received big contracts worth $360 crore in this quarter.
Comparison with TCS
A few months before this announcement by Infosys, Tata Consultancy Services (TCS) had also given salary hike to its eligible employees. There also the increase was made on the basis of performance. However, some employees had complained that due to the change in salary structure, their revised salary appeared less on paper. On this, TCS had clarified that there has been no reduction in the in-hand salary of the employees.
The country’s two biggest IT companies, Infosys and TCS, are trying to strike a balance between employee benefits, reduced client spending and increased investment in AI.