Infosys has introduced salary hikes for its employees in 2025, but the increments are noticeably lower compared to previous years. The company has adopted a performance-based approach, categorizing employees into three groups: “met expectations,” “commendable performance,” and “outstanding performance.” Depending on their ratings, employees received hikes ranging from 5% to 20%, with only a small group of securing double-digit increases. This move reflects the ongoing challenges in the IT industry and the company’s strategic response to the economic slowdown.
Just a small number of high-performing employees received double-digit increments.grouped its employees into three groups. The “met expectations,” “commendable performance,” and “outstanding performance.”
Those in the first group received 5-7% hikes while those in the “commendable” got 7 to10%. The “outstanding” performers, which is a smaller group, received increases ranging from 10% to 20%. Employees rated as “needs improvement” did not receive any raises.
The salary revisions applied to employees at Job Level 5 (team leaders) and Job Level 6 (managers below vice presidents). Job Level 5 employees will see their hikes effective from January 1st while for Job Level 6, the revised salaries take effect from April 1.
The latest salary hikes are reportedly 5-10% lower than the last pay revision in November 2023. The company has also reduced performance bonuses. the current slowdown in the IT industry. Employees had expected better hikes but the industry’s challenging phase influenced the decision.
As a measure to save money, Infosys hikes from occurring in FY22. They did not resume appraisals until October 2023. Since November 2023, appraisals have been occurring. The latest report by CFO Jayesh Sanghrajka in December stated that salary hikes of 6-8% had been recorded for India, with significantly higher numbers for the best-performing employees. Furthermore, low single-digit raises were recorded for those residing outside of India.
For the October-December quarter, there was an increase of $800 million in overall profits which amounted to 11.4% in net profits. Revenue also grew 7.6% to $4.9 billion compared to the same period last year.
In the 2024-2025 financial year, Infosys to hire more freshers. Specifically 15,000 new employees. They also expect 20,000 hires in the following financial year.
