It appears to be a season of salary hikes for the Indian IT sector. After Tata Consultancy Services (TCS), India’s second largest IT services company Infosys has now decided to offer salary hikes to all its employees. The increased pay, along with promotions for deserving candidates, would be effective from January 1, 2022.
“The quantum of increase will be identical to what we have done in the previous years,” U B Pravin Rao, chief operating officer of the Bengaluru-headquartered company said. In FY20, the average wage hike for Infosys’ employees in India was around 6 per cent, while for those, who are located overseas, it was in between 1-1.5 per cent.
Soon after the outbreak of the Coronavirus (Covid-19) pandemic, Indian IT majors including TCS, Infosys and Wipro had decided to freeze the salary hikes as a cautionary move. However, the improved performance and better visibility have now prompted many of them to revisit the decision and offer a raise.
TCS, last week, announced its decision to go ahead with a salary hike for all its employees. The hike will be effective from October 1, the beginning of financial year's third quarter for the company. "The salary increase will across all bands of employees and it (the quantum) will be similar to what we had done in the past," said Milind Lakkad, chief human resource officer at the Tata Group company.
While announcing its Q2 earnings, Wipro on Tuesday also said that it is planning to offer salary increments to junior employees, who were recruited through campus hiring programmes, while it has brought 80 per cent of its employee population to be considered for promotions, based on eligibility.
In the September quarter, Infosys saw its annualised employee attrition rate dipping to a low of 7.8 per cent as compared to 11.7 per cent in Q1FY21 and 18.3 per cent in the corresponding quarter of the last fiscal. The company said that while the pandemic certainly played a role in containing the attrition numbers, it had also made several interventions including increasing engagement to address the issue.
In Q2, Infosys added around 5,500 people on gross basis including around 3,000 fresh recruits and 2,500 laterals (people with experience). Overall in FY21, Rao said, the company would induct around 16,500 freshers who were recruited through campus programme last year. During the campus placement season, which is expected to start soon, Infosys is looking at giving around 15,000 offers, he added.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU