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HCLTech isn’t alone in deferring pay hikes. Infosys has also delayed its salary increments to the fourth quarter of the current financial year.
HCLTech’s management confirmed earlier that compensation reviews for senior and management-level employees were skipped in FY24.
India’s third-largest IT services company, HCLTech, is reportedly partially rolling out salary hikes for junior employees during the October-December quarter. Most received modest increments of 1-2 percent, while top performers saw raises of 3-4 percent.
According to a report by Moneycontrol, this is notably lower than the management’s earlier statements, which had promised average annual pay hikes of 7 percent and 12-15 percent increments for top performers.
In FY25, leading IT firms, except Tata Consultancy Services (TCS), have delayed wage hikes, which are typically implemented earlier in the fiscal year. The move appears to be a strategy to safeguard profit margins amidst ongoing challenges, including reduced discretionary spending and a subdued demand environment, the report stated.
Sources told Moneycontrol that HCLTech’s pay hikes have so far been limited to junior employees in the E0, E1, and E2 bands, representing staff with up to 10 years of experience.
However, mid- and senior-level employees (E3 and above) have yet to see any salary revisions. Two employees at the E3 level told Moneycontrol they had not received a salary hike for at least two fiscal years.
HCLTech’s management confirmed earlier that compensation reviews for senior and management-level employees were skipped in FY24.
HCLTech isn’t alone in deferring pay hikes. Infosys has also delayed its salary increments to the fourth quarter of the current financial year.
