IT major Infosys has deferred the annual wage hikes to the fourth quarter of the current financial year (Q4FY25), Moneycontrol reported on Monday. The company last raised wages in November 2023.
The delay in wage hikes mostly highlights uncertainty in global demand, especially for IT services. The current challenges faced by IT companies are low discretionary spending, delayed client budgets, and macroeconomic volatility.
Apart from Infosys, its competitors HCLTech, LTIMindtree, and L&T Tech Services have delayed salary increments in the second quarter to maintain profitability.
Infosys on October 17 was planning to hike wages in Q4 in a phased manner, the report added.
“Some part of that will be effective in January, and the balance will be effective in April,” CFO Jayesh Sanghrajka said after Q2 results.
Infosys issued performance bonuses in November
In November, Infosys rolled out performance bonuses to eligible employees for the quarter ending September 30, 2024, PTI reported. The bonuses were supposed to be disbursed with November-end salaries for mid to junior-level employees.
IT majors such as Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro and other Indian tech companies are scheduled to announce their earnings this month for the third quarter of FY25, which ended on December 31, 2024.
TCS, Infosys and HCL Technologies are expected to see constant currency revenue growth of 0.4 per cent, 1.0 per cent and 3.7 per cent on a sequential basis, Mint reported on January 2, 2025.
For Q3FY25, Infosys is expected to report revenue of 0.1 per cent on a quarter-on-quarter basis due to seasonal furloughs.
The IT giant is expected to maintain its guidance of 3.75 per cent to 4.5 per cent for the entire year.
According to brokerage firm Motilal Oswal, the H2 is expected to be weaker than H1 as growth was partially front-ended. The operating margin is expected to fall by 30 bps owing to furloughs. This will be offset by tailwinds from pricing improvements, sub-contract cost optimisation, and Project Maximus.
