Mon Jan 06 14:50:00 UTC 2025: ## Infosys Delays Annual Salary Hike Amidst IT Sector Slowdown
**Bengaluru, India** – IT giant Infosys has reportedly postponed its annual salary increase, originally scheduled for the fourth quarter of FY 2024-25. This follows a salary hike implemented in November 2023 and signals continued uncertainty within the Indian IT sector.
The delay is attributed to reduced IT spending by clients due to global macroeconomic factors, including anticipated trade policy changes under the incoming administration. Infosys is not alone; several other major IT firms, including HCL Tech, LTI Mindtree, and L&T Tech Services, also refrained from salary increases in the second quarter to manage costs and maintain profitability.
While Infosys’ second-quarter (July-September) profit saw a 4.7% year-on-year increase to ₹6,506 crore (approximately $786 million USD), analysts at Motilal Oswal Financial Services predict a potential margin decline in the December quarter due to employee leave and fewer working days. However, the company aims to offset this through price increases, subcontractor cost optimization, and its “Project Maximus” initiative, a cost-reduction plan. Despite the delay, Infosys recently increased its annual revenue growth guidance and announced a dividend. The postponement highlights the challenges facing the IT sector as clients grapple with economic headwinds.
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