Bengaluru-based IT giant Infosys has commenced its much-anticipated salary hikes for employees from February 2024. As per reports, the increments range between 5% and 8%, while exceptional performers are expected to receive a 10-12% increase.
The salary adjustments apply to employees in band JL6 and below, with the revised salaries becoming effective from April 1, 2025.
Infosys determines salary hikes based on an employee’s performance rating, categorising them into four bands:
Naturally, employees in the top performance tiers receive the most substantial salary adjustments.
Infosys had initially announced 6-8% salary hikes on January 16, 2024, but these were scheduled to be implemented in phases. The first phase commenced in February, while the second phase is expected in April 2025.
The IT sector has witnessed delays in salary revisions across FY25, with most major players—except Tata Consultancy Services (TCS)—postponing increments. This strategic delay helps companies preserve profit margins amidst a challenging economic landscape and declining discretionary spending from clients.
To counterbalance lower salary increments, Infosys has introduced additional allowances and benefits for employees falling under the taxable income bracket. The company, employing over 3.23 lakh professionals, last revised salaries in November 2023.
While a salary hike is great news, it often leads to increased expenses. However, a Step-Up Systematic Investment Plan (SIP) can be a strategic tool to convert this salary increase into long-term wealth.
A Step-Up SIP allows investors to increase their monthly SIP contributions periodically, usually in line with salary increments. Unlike a fixed SIP amount, this approach helps investors scale their investments over time, aligning with their growing income.
Let’s assume an employee starts an SIP of ₹10,000 per month and increases it by 10% each year.
Over a period of 20 years, this incremental SIP strategy can significantly boost wealth accumulation compared to a fixed SIP amount.
Infosys employees benefiting from salary hikes have a great opportunity to put this extra income to work. Instead of increasing discretionary spending, adopting a Step-Up SIP strategy can help them achieve long-term financial growth and security.
By simply adjusting investments in line with income growth, employees can harness the power of compounding and ensure a financially secure future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 27, 2025, 2:53 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
