Bengaluru-based tech bellwether Infosys has announced an average pay hike of 6% to a majority of its employees based in India. The company has also decided to give a 1%-1.5% wage increment to its workers in the U.S.
On the sidelines of the company’s quarterly performance meet here on Friday, Chief Operating Officer (COO) Pravin Rao said the company had decided to cover 85% of its employees in India under the salary increment plan, effective from April 1. About 2,500 promotions had been rolled out.
High performers would receive differential increments. The company had also decided to pay 85% of variable pay to employees.
During the fourth quarter ended March 31, the company experienced an increase in attrition, most of which had happened in the three- to five-year experience band in India, and among the two- to three-year experience category of employees in the U.S.
Infosys said it was analysing the scenario. The company had taken steps such as mile-stone-based increments, reworked compensation packages and digital training and certification, to bring down attrition.
‘Reducing attrition’
Mr. Rao said, “We are investing aggressively in people and we expect the attrition to come down in the next few quarters. We are comfortable with the 13-15% attrition level and that gives us flexibility.” During the fourth quarter, the company reported a 20.4% (annualised consolidated) attrition against 19.9% in the previous quarter. The company also saw a low employee net addition at 2,622 against 7,762 people in the December quarter. Its utilisation, including trainees, also came down slightly to 78.9% against 79.8% in the December quarter.
Infosys has a total employee strength of 2,28,123. In the last couple of years, it has been actively hiring in the U.S. and Europe as part of its localisation initiative.