Infosys, a leading IT company, has recently taken a decision to delay pay raises for its employees below the senior management level which raises the questions about its financial situation.
According to a report from Moneycontrol, Infosys typically increases salaries for its employees starting in April. However, this time the company has decided to postpone the salary hikes due to the challenging economic conditions it is facing globally. It is speculated that the cancellation or scaling down of several projects has prompted this tough call due to financial challenges.
Employees were eager for their annual performance appraisals that usually take place in the June quarter (Q1) but the delay in pay raises has left many employees uncertain about their financial future and has raised concerns about the stability of the company.
Even the senior management at Infosys is unaware of when they can expect their own salary increases. As the company navigates these financial challenges, there has been no communication about when or if the senior management will receive their long-awaited raises. This lack of information has further increased anxiety among employees.
This is not the first time that Infosys has delayed the salary hikes. In 2020, amidst the pandemic, the company had to freeze salary hikes to conserve cash. However, they were able to provide appraisals in January 2021, which brought some relief to the employees.