Saturday, April 14, 2012

IT Giant Infosys defers Annual Pay Hike

India's leading IT firm Infosys will not be offering salary hikes in April, which may upset its employees when there is price rise in all the consumer goods and products.

Nandita Gurjar, Infosys's vice-president and global head of HR, said, “Our employees understand the problems of the company. They are behind us and they are the major stakeholders. Most of our employees were aware of this from their business units about the conditions. This was a known thing for many. We formally informed them today morning".

The Bangalore-based company generally announces its annual pay hike in April. However, it decided to withhold it for the timing. The management would take the decision for pay hike after reviewing the market condition in the middle of the year.

"Our focus right now is on growth and the whole leadership team is working towards it. So, we have decided not to roll out hikes this April, but we might re-look into it later in the year if things improve", Gurjar said.

However, there will be recruitment and promotion in the company. Around 16,000 employees would get promotions and the company will recruit 35,000 employees this year.

This is not the first time the IT giant has delayed the annual pay hike. Earlier during the financial turmoil in 2008, Infosys had taken a similar measure in the aftermath of the Lehman Brothers implosion and the global financial crisis.

Later in the same year, employees were paid around 10% hike in October. The experts said that other Indian companies in the sector may follow the same.

Infosys employed 149,994 as of March 31 this year. The company said there would be no deferring of hiring of freshers from campuses. The company is also planning to hire 1,200 in the US where already 1,200 have been recruited in the past 18 months.

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