India’s second-largest IT-services exporter Infosys has given an average wage hike of 6.5% to its employees in India effective next month. The salary increase for the new fiscal year starting April 2015 is marginally higher than the average hike of 5-7 % it gave last year.
“Compensation reviews are being rolled out in 55 countries across the globe, effective April 1,2015. The average increase in India is 6.5% and can go up to 9% for high performers,” the company announced on its intranet Sparsh. It said the increment letters would be sent to employees in India starting March 27, and to those onsite starting April 24”.
“The annual increment is inflation-linked, but the gap between performers and non-performers could widen. IT companies are increasingly using differential compensation structure to reward their top performers from the rest of the organization and that trend will continue as companies fiercely fight it out to retain top talent.
The onsite salary increment is lower than expected,” said Ajit Isaac, chairman of Quess Corp that owns Ikya Human Capital.Infosys has also said quarterly promotions and role changes would continue to take place across all levels. In the very first week of Vishal Sikka taking over as Infosys CEO in August last year, he had announced quarterly promotions and had promoted 5,000 employees. Since then, about 5,000 employees are being promoted each quarter.
Harish HV, partner in the India leadership team at Grant Thornton, said Sikka has done a good job of boosting the morale of its employees by giving quarterly promotions and incentives.