Infosys to offer salary hikes to only eligible employees in 2 months: Story in 5 points

Infosys has confirmed that salary hikes for eligible employees will begin rolling out in the next two months, with most staff said to receive revised pay in October. There are some employees who will not get the hike during this time. The announcement came alongside the company's June quarter earnings, where Infosys also shared its hiring plans, leadership transition, and business outlook. Here is everything you need to know in five key points.

1. Salary hikes to begin from October

Infosys CEO Salil Parekh said the company will start rolling out annual salary hikes in phases. According to him, most eligible employees will receive their increments in October and some will get it after a few more months, according to Money Control. The company has not disclosed the average percentage of the salary hikes. Like previous years, the increments are expected to be linked to employee performance and eligibility.

2. Not everyone will receive a hike

Infosys has made it clear that the salary revision will apply only to eligible employees. While the company has not explained the exact eligibility criteria, IT firms typically base salary hikes on performance ratings, role, tenure and business requirements. The report claims that the senior employees will not get appraisals in October this year as they are said to get their revised salaries in January 2027.

3. Infosys plans to hire 20,000 freshers

Infosys has also revealed it remains committed to hiring new talent. The company plans to recruit around 20,000 freshers during the current financial year. It has already hired more than 4,000 freshers in the first quarter. However, the overall workforce saw a small decline. Infosys' employee count stood at 3,28,062 as of June 30, down slightly from 3,28,594 at the end of March. Attrition over the last 12 months also edged up to 13 percent from 12.6 percent in the previous quarter.

4. New CEO announced, revenue guidance trimmed

Infosys also announced a major leadership change. Ashiss Kumar Dash, who currently heads the company's energy business and has spent more than three decades at Infosys, has been named CEO-designate. He will take over as CEO in April 2027 after Salil Parekh's term ends.

The company also reduced the upper end of its full-year revenue growth guidance to 3 percent from the earlier 3.5 percent, reflecting a more cautious business outlook.

5. AI demand is rising, but clients remain careful

For the quarter ended June, Infosys reported revenue of Rs 48,211 crore, a 14 percent year-on-year increase. However, the figure came in slightly below market expectations as many clients continued to delay spending amid rapid changes driven by AI.

At the same time, AI-related services are becoming a bigger part of Infosys' business. They now contribute 8.2 percent of the company's revenue, up from 5.5 percent in the December quarter. Large deal bookings also remained healthy at $3.6 billion during the quarter, indicating that companies continue to invest in long-term technology projects even as they remain cautious about near-term spending.

How does this compare with TCS?

Infosys' announcement comes a few months after rival TCS rolled out salary hikes for eligible employees. TCS had earlier said that increments would be linked to performance ratings. However, the rollout drew criticism from some employees, who claimed that changes to the salary structure made their revised compensation appear lower on paper, even though the company maintained that take-home pay had been protected.

Like TCS, Infosys is also limiting salary hikes to eligible employees as the country's largest IT firms continue to balance employee rewards with slowing client spending and growing investments in AI.