Mon Jan 06 14:50:00 UTC 2025: **Infosys Delays Annual Salary Hikes Amidst Global IT Slowdown**
**BENGALURU, INDIA –** India’s second-largest IT services firm, Infosys, has announced a delay in its annual salary increases, pushing them to the fourth quarter of the fiscal year (Q4FY25). This follows a similar move by competitors HCLTech, LTIMindtree, and L&T Tech Services, reflecting a broader trend of cost-cutting measures within the industry.
The delay, originally flagged in October as a “phased” implementation starting in January, is attributed to weakened global demand for discretionary IT services and ongoing macroeconomic uncertainty. While Infosys reported a 2.2 percent quarter-on-quarter increase in net profit to Rs 6,506 crore in Q2, it fell short of market expectations. Although the company cited improved margins due to lower onsite costs and operational efficiencies, Motilal Oswal Financial Services predicts a margin hit in the December quarter due to furloughs and fewer working days, though this is expected to be offset by other factors.
Analysts suggest the stagnant job market has reduced concerns about employee resignations resulting from the delayed hikes. However, some teams continue to provide selective raises for top performers, particularly in high-demand areas such as artificial intelligence. The overall sentiment reflects a challenging environment where job security itself is considered a valuable benefit. The news follows a report highlighting significant disparities in CEO and fresher salary increases over the past five years.
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