Infosys, the second largest IT services provider, will roll out a 6-8% salary increments to its employees in two phases starting from the current quarter of the fiscal year ending March.The hikes will be given to its India employees while those overseas will see a slightly lower single-digit hike as seen previously, the Bengaluru giant’s chief financial officer Jayesh Sanghrajka said in a press conference.

“We are expecting is 6-8% in India. And you know, the overseas comps (compensation) will be in line with the earlier comp reviews,” Sanghrajka told media persons after the earnings announcement.

“Of course, high performers would receive much higher hikes, etc. Most employees will see their salary increases in the fourth quarter, he further said.

Without calling out specifics, Sanghrajka added, we will have some headwinds (on margins) coming from the compensation in Q4 and Q1 based on it.

On Thursday, the software service exporter posted a better-than-expected results with a 11.4% increase in consolidated net profit and a 7.6% rise in revenue growth from a year earlier.

Its operating margin improved to 21.3% on the back of a 40 basis points (bps – 0.40%) benefit from rupee depreciation and 30 bps from the margin improvement and cost reduction programme Project Maximus. One bps is a hundredth of a percent – 1 bps is 0.01%.Hikes in two phases

The company had earlier stated that the compensation reviews will happen in two phases.

“One phase from first January, the other one will happen from first of April. We are on track with that. The first part of the comp is getting rolled out in this quarter. The HR team is working on that,” Sanghrajka said.

Earlier this week, ET reported that Infosys will start rolling out its wage hikes from February.

The hike is for the appraisal period from September 2022 to October 2023 for which eligible employees received their rating letters in December 2023.

The employees falling at job level five (JL5) will receive their letters in February with the raise effective retrospectively from January 1. Those at JL6 and above will receive their letter in March with the hike taking effect from April.

The last increase in compensation was effective November 1, 2023 and had deferred last year’s increments.

The Salil Parekh-led software giant also gave 85% average performance bonus payout to its eligible employees for the second quarter ending September of the ongoing fiscal year 2024-25.

For the December quarter, Infosys’ profit stood at Rs 6,806 crore, up 4.6% sequentially. Revenue also beat estimates, rising 1.9% sequentially to Rs 41,764 crore.

Infosys, the second largest IT services provider, will roll out a 6-8% salary increments to its employees in two phases starting from the current quarter of the fiscal year ending March.The hikes will be given to its India employees while those overseas will see a slightly lower single-digit hike as seen previously, the Bengaluru giant’s chief financial officer Jayesh Sanghrajka said in a press conference.

“We are expecting is 6-8% in India. And you know, the overseas comps (compensation) will be in line with the earlier comp reviews,” Sanghrajka told media persons after the earnings announcement.

“Of course, high performers would receive much higher hikes, etc. Most employees will see their salary increases in the fourth quarter, he further said.

Without calling out specifics, Sanghrajka added, we will have some headwinds (on margins) coming from the compensation in Q4 and Q1 based on it.

On Thursday, the software service exporter posted a better-than-expected results with a 11.4% increase in consolidated net profit and a 7.6% rise in revenue growth from a year earlier.

Its operating margin improved to 21.3% on the back of a 40 basis points (bps – 0.40%) benefit from rupee depreciation and 30 bps from the margin improvement and cost reduction programme Project Maximus. One bps is a hundredth of a percent – 1 bps is 0.01%.Hikes in two phases

The company had earlier stated that the compensation reviews will happen in two phases.

“One phase from first January, the other one will happen from first of April. We are on track with that. The first part of the comp is getting rolled out in this quarter. The HR team is working on that,” Sanghrajka said.

Earlier this week, ET reported that Infosys will start rolling out its wage hikes from February.

The hike is for the appraisal period from September 2022 to October 2023 for which eligible employees received their rating letters in December 2023.

The employees falling at job level five (JL5) will receive their letters in February with the raise effective retrospectively from January 1. Those at JL6 and above will receive their letter in March with the hike taking effect from April.

The last increase in compensation was effective November 1, 2023 and had deferred last year’s increments.

The Salil Parekh-led software giant also gave 85% average performance bonus payout to its eligible employees for the second quarter ending September of the ongoing fiscal year 2024-25.

For the December quarter, Infosys’ profit stood at Rs 6,806 crore, up 4.6% sequentially. Revenue also beat estimates, rising 1.9% sequentially to Rs 41,764 crore.