Infosys, one of India’s top IT firms, is set to issue salary increment letters by the end of February, with pay hikes ranging from 5% to 8%. These increments will be effective from April 2025. The company has also been rolling out promotion letters since December, indicating a strategic move to align with an expected rise in IT spending.
Salary Hikes and Promotions Reflect Market Optimism
Infosys’ decision to increase salaries comes at a time when the IT sector is poised for growth. The company expects a 6% to 8% salary hike for Indian employees, while international increments will follow previous trends. Promotions have already been issued in batches since December, aligning with the firm’s anticipation of higher technology budgets in the upcoming fiscal year.
Infosys Faces Backlash Over Freshers Layoff
Amid positive developments in salary hikes, Infosys has been heavily criticized for laying off nearly 700 freshers from its Mysuru campus. These employees, who joined in September 2024 after long onboarding delays, were abruptly dismissed, leading to widespread condemnation.
Harpreet Singh Saluja, president of the IT employees’ union NITES, called the layoffs “shocking and unethical,” alleging that security personnel were deployed during the termination process. The move has triggered outrage on social media, with many questioning Infosys’ treatment of fresh graduates.
Industry-Wide Challenges in Hiring and Onboarding
The layoffs highlight a broader trend in the Indian IT sector, where delays in onboarding have become common due to shifting market conditions. Several IT firms, including Infosys, have struggled to synchronize hiring with fluctuating demand, causing uncertainty for new graduates. Many freshers who waited over two years for employment now face unexpected job losses, raising concerns about employment stability in the industry.
Infosys Balances Growth and Workforce Adjustments
While Infosys prepares for salary hikes and promotions, its handling of fresh hires has sparked controversy. The contrasting developments reflect the company’s efforts to navigate market fluctuations while managing costs. As IT spending is expected to rise, Infosys aims to capitalize on growth opportunities, but its recent layoffs could impact its employer reputation in the long run.
