Infosys to roll out salary hikes, promotions from Jan 1; give 100% variable pay

IT major Infosys on Wednesday said that it will roll out salary hikes and promotions across all levels effective from January 1, 2021. The country's ...

IT major Infosys on Wednesday said that it will roll out salary hikes and promotions across all levels effective from January 1, 2021. The country’s second largest software exporter, which has over 2.40 lakh employees, said it will give 100 per cent variable pay as well as special incentive for Q2 FY21.

“The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $3.15 billion and attrition reducing to single digits”, said Pravin Rao, COO, Infosys.

“Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100 per cent variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective Jan 1st,” Rao added.

Besides, the company also declared an interim dividend of Rs 12 per equity share. It has fixed October 26, 2020 as record date for interim dividend and November 11, 2020 as payment date.

At the end of September quarter, Infosys total headcount stood at 2,40,208 as compared to 2,39,233 in previous quarter and 2,36,486 in the year-ago period. Of this, the percentage of women employee was 37.9 per cent.

Also Read: Infosys Q2 results: Profit rises 20.5% to Rs 4,845 crore, raises FY21 revenue guidance

During the quarter, voluntary attrition for IT services declined to 7.8 per cent from 18.3 per cent of the previous year, Infosys said.

Last week, rival Tata Consultancy Services (TCS) also announced salary hike for its employees, which will be rolled out effective October 1. As per the company report, TCS’ consolidated headcount stood at 453,540 as of September 30, 2020. Wipro has also announced that it will award promotions to high performing employees in December.

Also Read: Good news for TCS employees! Company announces salary hike, effective October 1

All the promotions and increments were stopped in the IT companies in wake of coronavirus pandemic.

Meanwhile, Infosys reported 20.5 per cent growth in consolidated net profit at Rs 4,845 crore for the second quarter ended September 30, 2020, compared to Rs 4,019 crore in the same quarter last year. Consolidated revenue of the company increased by 8.6 per cent to Rs 24,570 crore in Q2 FY21 as compared to Rs 22,629 crore in the September quarter of the last fiscal. It has also raised revenue guidance for the current fiscal to 2-3 per cent in constant currency for financial year 2020-21, from 0-2 per cent earlier, on the back of strong deal wins and improved business environment.

Ahead of Q2 results, shares of Infosys ended Wednesday’s trade at Rs 1,136.10, down 1.89 per cent, against previous closing price of Rs 1,158 on the BSE.

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