Infosys, India”s second-largest IT company by valuation, is set to implement the long-awaited salary hikes in a phased manner. Some employees are expected to receive increments in January, while many are expecting them in December itself.

Sources attribute the salary hike delay to certain business units” budget-finalizing endeavors, as reported by the Times of India. Infosys has not responded to the queries yet.

Shaji Mathew, Infosys” HR head, said that permeant employees and high performers will have preferences in the compensation review cycle while excluding juniors and mid-level employees onboarded after October 2021, as well as seniors who joined after October 2020.

In addition, salary hikes, which used to be announced in June or July and took effect in April, have been effective as of November 1.

In the wake of macroeconomic headwinds and the demand downturn, Indian IT companies seem to be taking a cautious approach by adjusting hiring targets, which in turn affects employee strength as the number of employees hired does not tally with the number of departing employees.

With respect to Infosys, the attrition rate has declined by 50 percent, falling from 27.1 percent to 14.6 percent due to over hiring in anticipation of a rising attrition date. However, the bargaining power of IT professionals diminished due to the lack of demand for IT services.