Infosys Keeps Employees Waiting on Pay Hikes Amid Economic Uncertainty

Infosys has maintained a non-committal stance on employee salary hikes, leaving its workforce uncertain about when pay revisions will take place. During a recent company town hall, management refrained from providing a clear timeline, citing ongoing macroeconomic challenges and cautious client spending as key reasons for the delay.

The company, which employs over 3.28 lakh people, typically follows a structured appraisal cycle where performance reviews are completed by December, increment letters are issued in January, and salary hikes take effect from April 1. However, this year, despite completing employee evaluations for the appraisal period between September 2024 and October 2025, the company has yet to announce any wage revisions.

Chief Human Resources Officer Shaji Mathew acknowledged employee concerns during the town hall, stating that management has not made a final decision regarding salary increases. He indicated that the company is closely monitoring several factors, including macroeconomic conditions, client spending trends, and broader uncertainties in the global market. While expressing hope that a decision would come “sooner than later,” his remarks did little to reassure employees seeking clarity.

Senior leadership, including Chief Financial Officer Jayesh Sanghrajka and Chief Technology Officer Rafeek Tarafdar, also participated in the discussion but did not provide any additional specifics regarding the timeline or scale of potential pay hikes. This lack of clarity has led to growing frustration among sections of the workforce, especially given that there has already been a delay of several months in communication from the human resources department.

The uncertainty comes at a time when other major IT companies have already implemented salary revisions. Some competitors rolled out increments effective March and April 2026, although details of the percentage increases were not disclosed. This contrast has further heightened expectations among Infosys employees, many of whom were anticipating similar announcements in line with the company’s usual schedule.

Adding to the cautious outlook, Infosys recently projected modest revenue growth of 1.5% to 3.5% in constant currency terms for the financial year 2026–27. The company has pointed to the impact of new artificial intelligence tools and changing client priorities as factors influencing demand for IT services. In a post-earnings interaction, Sanghrajka reiterated that decisions on wage increases depend on multiple considerations, including attrition levels, inflation trends, market conditions, and the timing of previous hikes.

Despite the uncertainty surrounding salary revisions, Infosys continues to receive recognition as an employer. The company was recently ranked as the top Indian firm for career growth, highlighting its strong reputation in talent development and employee opportunities. However, for many employees, immediate concerns around compensation remain a pressing issue.

Last year, Infosys rolled out salary hikes ranging between 5% and 8% for most employees, with increment letters issued in February. The company has also resumed its appraisal cycle after previously freezing salary increases during the pandemic to conserve cash. In addition, it recently approved equity-based compensation grants for senior leadership, including CEO Salil Parekh, as well as eligible employees under its stock incentive plans.

As the company navigates a challenging business environment, its cautious approach reflects a broader trend across the IT industry. While Infosys continues to focus on long-term growth and operational stability, employees remain in wait-and-watch mode, hoping for clarity on pay hikes in the coming months.