After deferring salary hikes by a quarter, IT companies Infosys and HCL Technologies have now decided to roll out salary hikes. While Infosys will go ahead with pay revision from October onwards, HCL is planning to do it from November 1.
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Infosys Salary Hike
After announcing the company’s financial results on October 12, Infosys Chief Financial Officer Nilanjan Roy said the company will roll out its wage hikes from November 1.
The company used to roll out hikes to everyone below the senior management in April, and to those above in July. “Every quarter we have a look at the environment and what the competition is doing — so there is nothing decided,” he said.
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HCL Tech Salary Hikes
During its Q2 earnings conference on October 12, its Chief People Officer Ramachandran Sundararajan said HCLTech will begin its salary reviewing process for the financial year 2023-24, after deferring it by over a quarter.
“We had deferred pay revision by a quarter. We will now be going ahead with pay revision this quarter, from October onwards. Mid- and senior management won’t take pay hikes in FY24. But for 90 percent of our employees, we will go ahead with pay revision,” Sudararajan said.
On variable pay, he said most employees will get nearly 85 per cent of their earmarked variable pay amount.
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“Quarterly variable pay is 3 percent of the annual compensation of the individual. All colleagues will get quarterly variable pay this quarter. The majority of them should receive 85 percent of the variable pay,” he said.
Meanwhile, India’s largest IT services firm TCS was the first to say that it rolled out hikes in Q1FY24 to employees, and up to 12-15 per cent for top performers.
Kick-starting Q2 earnings season, Tata Consultancy Services (TCS) on Wednesday posted an 8.73 per cent growth in its net profit to Rs 11,342 crore for the September 2023 quarter. Its revenue during July-September 2023 rose 7.92 per cent to Rs 59,692 crore, compared with Rs 55,309 crore a year ago. The company also declared its interim dividend of Rs 9 per share.
After TCS, IT major Infosys on Thursday reported a 3.2 per cent rise in its net profit to Rs 6,212 crore for the second quarter ended September 2023. Its revenue during July-September 2023 increased 6.7 per cent to Rs 38,994 crore, compared with Rs 36,538 crore a year ago.
HCL Tech posted a 9.83 per cent jump in its net profit to Rs 3,832 crore for the second quarter ended September 2023. Its revenue from operations during July-September 2023 increased 8.04 per cent to Rs 26,672 crore, compared with Rs 24,686 crore a year ago.
