Infosys, Wipro hike employee salaries by upto 8%
Bangalore/Mumbai: Country's two IT companies Thursday announced wage hikes, with Infosys saying its employees in India will get an average 8 percent increase and Wipro offering 6-8 percent raise for offshore employees.
Weeks after Narayana Murthy returned to Infosys, the country's second largest IT firm announced it will increase salaries of its employees in India for the fiscal year 2014 by an average 8 percent.
Employees based in other geographies, who have not been covered by salary increases in February 2013, would see wages increasing by an average three percent, the company said in a statement.
The increments will be effective July 1, 2013.
Commensurate with industry standards, Wipro said Thursday it has announced an average wage hike of 6-8 percent for offshore employees and 2-3 percent for onsite employees, effective this month.
"In line with the practice of rewarding high performers, Wipro has awarded double-digit hikes for these employees", the Bangalore-headquartered, New York Stock Exchange-listed firm said in a statement.
Infosys said it has increased salaries of its global sales force by an average eight percent, effective May 1, 2013.
Most Indian IT firms give increments around April or May.
Infosys, which has been going through a tough phase, has been reporting lower growth than peers like TCS and Cognizant and there was speculation that it mighty delay hikes this year as well.
Last year, salary increases were given only in October, when the company came under pressure from increments offered by peers.
Commenting on the hike in Infosys in general and the IT services sector in particular, HeadHonchos.Com CEO Uday Sodhi said that IT sector has been conservative in terms of hike.
"IT sector has been fairly conservative in terms of pay hike. We recently did a survey, where we asked some of our customers on increments this year and almost 46-47 percent of the respondents said they are looking at wage hikes in 6-15 percent," he added.
The IT firms are also looking at the global economic scenario, which still has not been very promising and it plays an important role in determining the hike percentage, he said.
India's largest software services exporter Tata Consultancy Services (TCS) had announced a wage hike of 8-10 percent for its employees in India and 2-4 percent for its on-site (employed overseas) employees.
HCL Technologies has also started its appraisal process and is expected to make an announcement on the hikes by July-end.