Bangalore/Mangalore, June 13: In a surprise move after Narayana Murthy’s return, Infosys has announced an 8% increase in salaries for employees based in India, effective from July 1. The company’s offshore employees, who were not given hikes in February, can look forward to a 3% increase in their salaries. The global sales team has been given 8% hike effective from May 1.
Last month, the second-largest IT Company handed out increment letters to its sales teams and to those employees who had received promotions. Last year, salary increases were given in October, when the company came under pressure from peers in the industry. Infosys then gave a 6% hike to offshore employees and 3% to onsite employees.
In a recent stock exchange filing, the company said wage hikes were inevitable due to competitive pressures. The company said it has to increase its employee compensation more rapidly than in the past to remain competitive with other employers, or seek to recruit in other low labour cost regions to keep wage costs low.
“These wage pressures have led to a situation where wages in India are increasing at a faster rate than in the United States, which could result in increased costs for companies seeking to employ technology professionals in India, particularly project managers and other mid-level professionals,” the filing said.