As Infosys gears up for its next performance appraisal cycle in October 2023, employees are left waiting for salary hikes from the previous cycle. Infosys, India’s second-largest IT exporter, is preparing for its ‘performance review cycle–October 2023,’ set to begin with self-evaluation on September 29, as per an internal email communication. The manager evaluation phase is expected to conclude by the end of October, with individual employee ratings scheduled to be disclosed in the first week of December. This assessment will encompass performance spanning from October 2022 to September 2023.
However, amidst the anticipation of a fresh appraisal cycle, concerns linger as some employees have yet to receive salary hikes from the previous appraisal cycle, covering the period from October 2021 to September 2022. Two anonymous employees disclosed this delay to a financial daily, casting uncertainty on whether these pending hikes will be integrated into the upcoming cycle or deferred.
One employee emphasized the need for updating self-evaluations and achievements soon, highlighting that although the appraisal process took place last year, the customary salary revisions, typically disbursed in June or July, are still pending. As of the time of this report, Infosys had not responded to inquiries regarding the status of these pending salary hikes.
During an earnings conference following the first quarter, Infosys’ Chief Financial Officer, Nilanjan Roy, indicated that the rollout of annual hikes was under “active consideration.” The Indian IT industry, facing challenges due to global macroeconomic conditions, has experienced tightened technology spending.
In 2020, Infosys froze salary increases in an effort to conserve cash but reintroduced hikes in January 2021. On the other hand, Wipro, a rival company based in Bengaluru, has deferred hikes for FY23 by a quarter, with payouts scheduled for the December-ended quarter, according to outgoing CFO Jatin Dalal. In contrast, industry leader Tata Consultancy Services (TCS) announced annual hikes for FY23, effective from April, offering average salary increases ranging from 6-8%, with exceptional performers receiving up to 12-15% increments.
Notably, Infosys took the initiative last month to introduce an average 80% quarterly variable pay for its employees for the first quarter-ending in June. Typically, Infosys conducts its performance evaluations from October to September, with salary hikes traditionally distributed in June or July the following year.
