One of the best IT companies in India, Infosys, has stated that salaries will go up in 2025. But compared to past years, the raises are smaller, which makes many employees unhappy. The company uses a performance-based approach, which means that raises in pay rely on how well each employee does their job.
Performance-Based Salary Hikes
Based on how well they do their jobs, Infosys has divided its workers into four groups:
- Expectations were met: Got a 5-7% pay raise.
- Excellent Work: Got a raise of 7–10%, which is a little better.
- Outstanding Performance: Ten to twenty percent raises were given to a small group of top workers.
- Things that need to be fixed: Workers in this group did not get a raise.
The biggest winners were the top workers, but most employees got small raises as well. The new pay starts on January 1, 2025, for Job Level 5 (team leaders) and April 1, 2025, for Job Level 6 (managers below vice presidents).
Lower Hikes Compared to Previous Years
This year’s pay raises are 5–10% less than the last one, which happened in November 2023. In addition, prizes for good work have been cut. This is part of Infosys’ plan to keep prices down as the IT industry slows down. A lot of workers were hoping for bigger raises, especially since the company did so well financially in the last quarter.
Infosys’ Financial Performance in Q3 FY25
Infosys had good financial success for the October–December 2024 quarter, even though the raises were lower:
- The net profit went up by 11.4% to $800 million.
- Compared to the same time last year, sales went up 7.6% to $4.9 billion.
- The total amount of big deals booked was $2.5 billion, which shows that US clients are still interested.
Look at this tweet:
Watch the live media interaction with Infosys management on the company’s performance in Q3 FY25. #InfosysQ3FY25 https://t.co/kTMq26AJBk
— Infosys (@Infosys) January 16, 2025
People who worked there had hoped for better pay changes given these high numbers. But the company’s efforts to cut costs have been affected by things like less spending by customers, economic uncertainty, and slower business growth.
Infosys’ Approach to Salary Revisions
This is not the first time Infosys has done something to save money. The company stopped giving raises in 2022 to save money. Late in 2023, appraisals started up again, but the most recent cuts show that Infosys is still being careful with its money.
It’s interesting that Infosys plans to hire 15,000 new people in 2024-25 and 20,000 new people in 2025-26, but current employees will get smaller raises. This makes it sound like the company is trying to hire more people while keeping salaries low for the ones they already have.
Employee Reactions and Industry Outlook
A lot of people who work at Infosys think that their present pay structure doesn’t reflect how much they’ve contributed. Many employees are unhappy with their lower pay raises and bonuses.
In the meantime, the IT business as a whole is having trouble. In order to deal with the uncertain economy, businesses are cutting costs, delaying raises, and lowering bonuses. Infosys’s latest move shows how hard it is to keep employees when the job market is competitive and costs need to be kept down.
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Conclusion
The fact that Infosys chose to give smaller raises in pay shows how tough the IT business is. The company is still doing well financially, but it is being careful about how much it pays its employees. It remains to be seen whether this approach will help Infosys keep growing or cause more employees to leave.
For employees, the attention will now be on ways to advance in their careers and possible raises in the future. As Infosys grows, how it keeps and rewards its best employees will become more and more important to its long-term success.
Disclaimer: This article is for informational purposes only and should not be considered financial or career advice.
