Infosys has announced an across-the-board salary hike and promotions with effect from October 1.
Domestic (offshore) salaries have risen by 8% while onsite remunerations have gone up by 2%. This is expected to reduce the company’s margins by 2% in the next two quarters.
Responding to a query on the CEO salary, T V Mohandas Pai, head of HR, said, “Our CEOs are always paid less than other senior staff. All of us have taken a 50% cut on our variable pay in the last three quarters and none of us is paid vulgar or outrageous salaries.”
The company made a gross addition of 6,069 people and a net addition of 1,548 during the second quarter against the previous quarter’s net hiring of a negative 945. The company has also revised its hiring mandate for this fiscal from 18,000 to 20,000.
In the second quarter, the business climate has improved. Clients are now looking to invest in a few strategic initiatives and relationships to maximise value from opportunities when the economic downturn ends. We are continuing to invest and expand in regions like India, Brazil, Mexico and China.