IT major Infosys on has announced that it is going to roll out salary increases and promotions across all levels effective January 1. Along with this, the company also plans to give 100 per cent variable pay, along with a special incentive for the second quarter.
“Recognising the continuing stellar commitment from our employees during these times, we are paying out variable pay for the quarter at 100 per cent. We will pay a one-time special incentive in Q3 for our junior employees,” Infosys CEO and MD Salil Parekh said during a virtual briefing.
“We restarted promotions in the last quarter at our junior levels, and this will now be expanded to all our levels,” Parekh said.
Some time ago, Infosys had said it was suspending promotions and pay hikes amid the epidemic-led slowdown in business but would honour all the job offers it had made. In addition to this, the company also plans to hire about 15,000 freshers from campuses next year.
Infosys COO Pravin Rao said the quantum of salary hikes will be identical to those seen in the previous years.
Last year, the average wage hike by Infosys in India was around 6 per cent, while it was 1-1.5 per cent outside the country.
In the September 2020 quarter, Infosys added 975 people (net) to take its headcount to 2,40,208 employees. Its voluntary attrition for IT services on an annualised basis declined to 7.8 per cent as compared to 18.3 per cent in the year-ago period.
“…for this year, we are looking at 16,500 freshers in India joining us and hiring has started for next year and we are probably looking at 15,000,” he added.
Rao said attrition has come down significantly than what is typically seen around this time of the year.
He added that this was on account of multiple factors, including the steps taken by the IT major towards employee engagement and safety during the pandemic.
In September, Infosys had announced plans to hire 12,000 American workers over the next two years. In 2017, Infosys had committed to hiring 10,000 American workers over the two years.