Infosys has yet to take a call on employee salary hikes for the current fiscal year, with a four-month delay in communication adding to concerns among staff and signalling a cautious approach to costs amid an uncertain demand environment.
At a recent town hall, senior management reiterated that no timeline has been finalised for wage revisions, according to reporting by The Economic Times. Employees had sought clarity on increments, which are typically announced earlier in the appraisal cycle.
Management maintains cautious stance on increments
Chief human resources officer Shaji Mathew said the company is still evaluating multiple external and internal factors before making a decision.
“I just hope it is sooner than later,” Mathew said at the town hall, as reported by The Economic Times.
Chief financial officer Jayesh Sanghrajka, speaking earlier during the company’s post-earnings interaction, also indicated that timing remains uncertain.
“We have not really decided the timing. We consider multiple factors when we decide that,” he said, citing attrition levels, inflation, market conditions and the timing of previous wage hikes.
Delay disrupts established appraisal cycle
The current delay marks a deviation from Infosys’s usual compensation timeline.
Typical appraisal and increment cycle at Infosys:
- Performance reviews completed by December
- Increment letters issued in January
-
Salary hikes implemented from April 1
This year, while employee ratings were released in December following appraisals for the September 2024 to October 2025 period, increment communication has not followed, leaving employees without clarity beyond the expected April timeline.
Sections of employees told The Economic Times that the absence of a clear update has dampened expectations, especially given the elapsed time since appraisals were completed.
Industry peers move ahead with pay revisions
The delay at Infosys stands in contrast to actions taken by some of its peers.
Recent compensation actions in the sector:
- Tata Consultancy Services rolled out increments effective April 2026
-
Wipro implemented salary revisions from March 1, 2026
While exact hike percentages were not disclosed, the moves suggest that parts of the industry are proceeding with planned compensation cycles despite macroeconomic headwinds.
Cautious growth outlook influences decisions
Infosys has guided for revenue growth of 1.5 percent to 3.5 percent in constant currency terms for FY27, reflecting a subdued outlook.
The company is navigating:
- Slower client spending
- Continued macroeconomic uncertainty
-
Gradual adoption of new technologies such as artificial intelligence
These factors are shaping cost management strategies, including decisions around employee compensation.
Context of broader compensation structure
Earlier this month, Infosys approved equity-based compensation grants for chief executive officer Salil Parekh and eligible employees under existing stock incentive plans.
The company stated that performance-linked restricted stock unit grants for Parekh totalled about ₹51.75 crore across multiple categories, reinforcing its structured approach to executive compensation.
Historically, Infosys has balanced salary increments with variable pay and long-term incentives. Last year, most employees received salary hikes in the range of 5 percent to 8 percent, according to The Economic Times.
The delay in wage hike decisions highlights the tension between cost discipline and employee expectations in a low-growth environment.
While Infosys continues to assess external conditions before committing to increments, prolonged uncertainty risks affecting morale and retention, particularly as peers move ahead with salary revisions.
The timing of any eventual decision will likely depend on demand visibility, attrition trends and margin priorities in the months ahead.