Delay in salary hike for senior employees in Infosys
Infosys delay hike for senior employees as only 3-5 percent of Job-level-7 category received hikes in July. In April, Infosys told the top 15 percent of its executives, including middle and senior management who were not given salary hikes in April would be given same in July. However, only about a quarter of their executives received a hike. The hikes for the rest of them have been deferred.
The incremental deferral may be a part of an effort to contain margin drop. Infosys’ margins have been under pressure as they are hiring locally in the US which accounts for higher subcontinent costs.
The company has hired about 9,000 people in the US. However, the deal volumes have to pick up substantially to offset the impact of the new hires with sizeable salaries.
Infosys has forecast its operating margin to be in 21-23 percent band for 2019-20, down from 23-25 percent that it was not long ago. TCS had a near 26 percent operating margin in the last fiscal.
The media also reported that there is wariness among some of the employees who have been deferred hikes in salaries, considering the Indian IT industry is witnessing layoffs and voluntary retirement programs for senior management.