Rupee fall to cushion wage hike impact

Infosys announced an average increase of 8% for employees in India, while those in other geographies will get an average 3% hike.

Two of the largest Indian information technology (IT) services companies, Infosys and Wipro, have announced annual wage increases this year, the quantum of which are more in line with the industry average. While Infosys said it would give an average rise of eight per cent to its employees in India, Wipro has announced an increment of six-eight per cent.

Infosys usually gives rises to its employees with effect from April every year. In FY13, the company deferred the decision citing tough global economic environment. However, it later revisited the decision and announced a wage hike in October. This year (FY14), though the company management had indicated to restructure the employee compensation with an aim of increasing the fixed component in the salary, it was non-committal on giving a rise.

Apart from India, employees located in other geographies, who were not given wage hike in February this year, will be covered in this cycle, Infosys said in a statement today. They would be given an increase of about three per cent in average. The increments will be effective July 1. However, for its global sales force, the changes will come into effect from May 1.
Source: Business-Standard