Infosys's annual salary increment process to begin in February: Report
What's the story
Infosys is all set to kick-start its annual salary increment process in February, according to The Economic Times.
The company will be handing out increment letters to employees at job level five (JL5) and below next month. The pay hike will be effective retroactively from January 1.
The move is in line with Infosys's earlier announcement and makes for a positive start to the new year for its workforce.
Increment specifics
Pay hike details and employee categories
The pay hike is applicable for the appraisal period of September 2022-October 2023. Eligible employees received their rating letters in December 2023.
Those at JL6 and above will get their increment letters in March, with the raise coming into effect from April.
The JL5 category includes track leads, software engineers, senior engineers, system engineers, and consultants while JL6 and above includes managers, senior managers, delivery managers, and senior delivery managers but not vice presidents.
Strategy alignment
Strategy aligns with CFO's plan
The pay hike schedule matches what Infosys CFO Jayesh Sanghrajka had outlined during an earnings call on October 17 last year.
He had said that the increment would be implemented in two phases, with junior employees getting it in January and the rest in April 2025.
Sanghrajka had also mentioned an increase in variable pay within this quarter, adding another factor to consider for employees' total compensation.
Bonus history
Performance bonus and salary revision history
In second quarter of fiscal year 2024-25, Infosys gave an average performance bonus payout of 85% to eligible employees.
The number was marginally higher than the June quarter's average payout of 80%, indicative of a strong growth period between July-September.
However, in FY2022, Infosys had put salary hikes on hold as a cash conservation measure but resumed its annual appraisal cycle in October 2023 with a salary revision letter issued for the last salary cycle in December 2023.