Infosys will roll out its annual salary hikes in three phases starting in October, with senior employees receiving their increments in January, CEO Salil Parekh said after the company’s Q1 FY27 earnings announcement on July 23.
Most employees will get their hikes in October, while those in senior roles will see revisions from January, following the company’s annual compensation review cycle. Infosys did not disclose the average hike percentage. The phased approach comes amid a mixed demand environment for the IT services industry, with companies weighing cautious client spending against continued investment in AI and digital transformation.
“Most employees will get hikes in October and senior employees will get in January,” Parekh said at the post-earnings press conference.
Alongside the salary announcement, Infosys said it plans to hire 20,000 freshers during the current financial year, having already brought on over 4,000 employees in Q1. The company’s IT services attrition stood at 13% on a last-12-month basis as of June 30, marginally higher than 12.6% in the previous quarter. Headcount stood at 3,28,062 at the end of June, compared with 3,28,594 three months earlier.
The announcement follows a stretch of delayed and subdued increments at Infosys. The FY24 cycle was rolled out in two phases, with hikes 5-10% lower across levels than the previous revision in November 2023. The company had also frozen salary increases entirely in FY22 amid global uncertainty.
Infosys also used the earnings call to announce a leadership transition, naming Ashiss Kumar Dash as CEO-designate. Dash will take over as CEO and Managing Director from April 2027, when Parekh’s current term ends, with a structured transition period expected in between.
