From Infosys To Wipro: Many IT Sector Giants May Skip Salary Hikes This Year

It seems that the wait for Indian IT sector employees to get salary hikes will get longer. Besides IT employees experiencing varying increments this year, reflecting the challenges posed by a softer business environment, several leading IT companies have made different decisions regarding salary hikes for their employees.

No Salary Hikes By Many IT Giants

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Infosys and HCL Tech have chosen not to implement raises this time. Typically, Infosys announces its salary hikes in June or July, with them taking effect in April. HCL Tech has opted to skip increments for mid- to senior-level employees in this fiscal year and has postponed raises for junior employees by a quarter, as per the TOI report.

Wipro has committed to providing a salary increase, but the announcement is expected in the third quarter (October¨CDecember), compared to September of the previous year. On the other hand, Tech Mahindra has granted increments to junior and mid-level employees but has deferred the same for senior roles by a quarter.

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TCS: An Exception With Salary Hike Payouts

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In contrast, India's biggest IT sector firm, TCS, has given an average hike of 6% to 8%, similar to the previous year, with double-digit increases for top performers. Among mid-sized IT firms, Coforge, Persistent Systems, and LTI Mindtree have announced salary hikes for their employees.

These divergent moves by IT companies partially reflect the demand trends in the industry, especially those heavily reliant on the banking and financial services sector, which has been more significantly impacted. Infosys, for instance, has seen adverse effects from the slowdown in the BFSI sector and has lowered its growth forecast for the 2023-24 financial year to a range of 1% to 3.5%, down from the initial guidance of 4% to 7%.

Wipro also faced a 2.8% sequential decline in revenue in the June quarter. Wipro CEO Thierry Delaporte mentioned that businesses across various industries have been reducing discretionary spending in response to weaker macroeconomic conditions. Wipro had reduced its headcount by 9,000 in the June quarter, the report mentioned.

"We have had a good wage increase cycle over the last couple of years, and given the macro uncertainty and cost inflation, we made this decision this year," HCL CEO and MD C Vijayakumar said.

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