Infosys to issue salary hike (5% to 8%) letters by February-end

India’s second-largest IT services firm, Infosys, is set to issue salary hike letters to employees by the end of February, with average increments expected to range between 5% and 8%, according to sources familiar with the matter. These salary hikes, applicable for the 2024-25 financial year, will take effect from April.

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The decision comes as the demand for IT services picks up, with industry leaders expecting an increase in technology budgets in the next fiscal year. Indian IT firms, which generate most of their revenue from North America, have observed a resurgence in discretionary spending. More businesses are now investing in digital transformation projects after cautious spending over the past two years.

Infosys has also begun issuing promotion letters in batches. The first set was sent out in December, and another round is scheduled for the end of February. On January 16, the company announced plans for annual salary hikes of 6-8% for its India-based employees, with the first phase beginning in January 2025, followed by a second phase in April 2025.

The upcoming salary hikes and promotions signal a positive shift in the IT sector, reflecting renewed optimism in the industry’s growth trajectory.