Infosys hikes salaries by 8%

Weeks after N R Narayana Murthy returned to Infosys, the country's second largest IT firm announced on Thursday it will increase salaries of its employees in India for the fiscal year 2014 by an average 8 per cent.

Employees based in other geographies, who have not been covered by salary increases in February 2013, would see wages increasing by an average three per cent, the company said in a statement.

The increments will be effective July 1,2013.

The announcement comes within days after Infosys founder Narayana Murthy was recalled from retirement and appointed as the executive chairman for a period of five years.

Rival firm Wipro has already announced hikes of similar quantum.

"Commensurate with industry standards, Wipro has announced an average wage hike of 6-8 per cent for offshore employees and 2-3 per cent for onsite employees, effective June 2013,"

Wipro had said.

In line with the practice of rewarding high performers, Wipro has awarded double-digit hikes for such employees, it added.

Infosys said it has increased salaries of its global sales force by an average eight per cent, 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 might 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.