Infosys to roll out salary hikes from Jan 2021; pay special incentive to junior staff
India’s second-largest IT services firm Infosys on Wednesday said it will roll out salary hikes and promotions across all levels effective January 1.
Infosys is also giving 100 per cent variable pay, along with a special incentive for the second quarter.
Besides, the Bengaluru-based company plans to hire about 15,000 freshers from campuses next year.
“Recognising the continuing stellar commitment from our employees during these times, we are paying out variable pay for the quarter at 100 per cent. We will pay a one-time special incentive in Q3 for our junior employees,” Infosys CEO and MD Salil Parekh said during a virtual briefing.
The salary hike process will restart now and will be effective on January 1, 2021, he added.
“We restarted promotions in the last quarter at our junior levels, and this will now be expanded to all our levels,” Parekh said.
Infosys had earlier said it was suspending promotions and pay hikes amid the epidemic-led slowdown in business but would honour all the job offers it had made.
Infosys COO Pravin Rao said the quantum of salary hikes will be identical to those seen in the previous years.
Last year, the average wage hike by Infosys in India was around 6 per cent, while it was 1-1.5 per cent outside the country.
In the September 2020 quarter, Infosys added 975 people (net) to take its headcount to 2,40,208 employees. Its voluntary attrition for IT services on an annualised basis declined to 7.8 per cent as compared to 18.3 per cent in the year-ago period.
Rao said in this quarter, Infosys had about 5,500 additions of which roughly 3,000 were freshers and about 2,500 were laterals.
“...for this year, we are looking at 16,500 freshers in India joining us and hiring has started for next year and we are probably looking at 15,000,” he added.
Rao said attrition has come down significantly than what is typically seen around this time of the year.
He added that this was on account of multiple factors, including the steps taken by the IT major towards employee engagement and safety during the pandemic.
On the recently announced restrictions on H-1B non-immigrant visa programme in the US, Rao said the company will be able to handle these challenges with minimal impact as the company has been aggressively hiring local talent laterally as well as from colleges and universities in America.
“Since 2017, we have aggressively embarked on a localisation strategy. In the last three years, we have recruited more than 13,000 locals in the US. Today, nearly 63 per cent of our workforce is local and is visa independent,” he said.
Apart from lateral hiring, the company has also recruited from universities, he added.
North America accounted for over 60 per cent of its quarterly revenues, followed by 24.3 per cent from Europe, 3 per cent from India and 12 per cent from Rest of the World (RoW).
In September, Infosys had announced plans to hire 12,000 American workers over the next two years. In 2017, Infosys had committed to hiring 10,000 American workers over the two years.