Infosys to give up to 9% salary hike in FY16 to check attrition

Infosys, the country's second largest IT services firm, will give out pay hikes in the range of 6.5 per cent to 9 per cent to employees in the country for the 2015-16 financial year.

This is the first wage hike to be rolled out since Vishal Sikka took over as the chief executive in August 2014.

Infosys, which was facing an exodus of senior-level executives over the past two years, has also been grappling with high attrition rates.

The company's attrition (on last 12 months basis) stood at 20.4 per cent for the reported quarter, slightly higher than 20.1 per cent registered in the July-September quarter.

Infosys added 13,154 (gross) and 4,227 (net) employees during the October-December quarter of FY15, taking its total headcount to 169,638 at the end of December 31, 2014.

Under Sikka, the IT services firm has been undertaking various steps, including offering a 100 per cent variable bonus payout to its employees for the December quarter, to stem high attrition.

Effective April 1, the Bangalore-based software services provider is offering an average hike of about 6.5 per cent, sources said.

On the other hand, top performers at the firm will be given a hike of about 9 per cent, while salaries of onsite employees will be raised by about 2 per cent, they added.

The spokesperson for Infosys confirmed the news.

In the previous financial year (FY15), the company had given salary hikes of about 6-8 per cent to domestic employees, and about 1-2 per cent for onsite employees.