It seems to be the season of salary increases in the IT sector of India. After Tata Consultancy Services (TCS), India’s second largest IT services company, Infosys has also decided to offer raises to its employees.
The salary increase, along with promotions for some, would take effect from January 1, 2022, which is the third quarter of the financial year for the Bengaluru-based company.
“The amount of increase will be identical to what we have done in previous years,” said UB Pravin Rao, Chief Operating Officer of Infosys. In fiscal 2020, the average salary increases for Infosys employees in India was around six percent, while it was between 1 and 1.5 percent for those located abroad.
Shortly after the outbreak of the Covid-19 pandemic, Indian IT specialties including TCS, Infosys and Wipro had decided to freeze the pay increase decision as a precautionary measure. However, the improved performance and better visibility have led many of them to reconsider the decision.
TCS announced last week its decision to increase the salary of all its employees, which will take effect from October 1, the start of the third quarter of the financial year for the company. “The pay increase will occur across all employee bands and (the amount) will be similar to what we have done in the past,” said Milind Lakkad, director of human resources for the Tata Group company.
In announcing its second-quarter earnings, Wipro also said Tuesday that it is considering offering raises to junior employees hired through campus recruiting programs, while saying that 80 percent of employees would be considered for promotions, according to your eligibility.
In the September quarter, Infosys saw its annualized employee attrition rate drop to a low of 7.8 percent, compared to 11.7 percent in the first quarter and 18.3 percent a year ago. The company said that while the pandemic certainly played a role in containing attrition, it also made various interventions such as increasing commitments to address the problem.
In the second quarter, Infosys added around 5,500 people grossly, including roughly 3,000 new recruits and 2,500 sidelines (experienced people). Overall, in fiscal year 21, Rao said, the company would induct about 16,500 rookies recruited through the campus program last year. During the on-campus placement season, which is expected to begin soon, Infosys is considering making 15,000 offers, he added.
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