Infosys Launches Annual Performance Appraisal, Employees Hope for Salary Increases
Infosys, one of India’s leading IT services firms, has initiated its annual performance appraisal process, igniting optimism among its workforce regarding potential salary increases for 2026. The company, headquartered in Bengaluru, has sent out emails to employees urging them to complete the appraisal process by October 17. This routine exercise is particularly significant this year, as many employees are hopeful for a raise after a challenging previous year.
Context of the Appraisal Process
The annual review cycle at Infosys spans from October to September, with employee ratings typically disclosed by January and appraisal letters issued in June. This timeline is crucial for employees as it sets the stage for their financial planning and career development. An employee, who preferred to remain anonymous, expressed cautious optimism, stating, “This is a routine exercise, but we hope the company will give us a raise this time, unlike last year.”
In the previous fiscal year, Infosys had implemented salary hikes effective November 1, 2023, following a freeze on salary increases in FY22 aimed at conserving cash. The annual appraisal for FY24 was notably delayed, rolling out in two phases during January and April of 2025. This delay has heightened expectations for the current appraisal cycle, as employees are eager to see improvements in their compensation packages.
Historical Salary Trends
Historically, Infosys has been known for its competitive salary structures, but recent years have seen fluctuations. The last pay revision in November 2023 resulted in hikes that were reportedly 5-10% lower across various bands compared to previous increments. Employees at the JL5 level, which includes team leads, received pay revisions retroactively effective from January 1, while those at JL6 and above saw adjustments effective from April 1.
The current appraisal cycle for FY25 encourages employees to reflect on their contributions and set future goals. The email from HR emphasizes the importance of planning development goals and identifying areas for skill enhancement. “This is your opportunity to reflect on your key efforts, outcomes, challenges, achievements, and set future-ready goals,” the communication stated.
Performance Evaluation Criteria
The salary increases this year will be contingent upon performance ratings, categorized as “met expectations,” “commendable,” or “outstanding.” This structured approach to performance evaluation is designed to motivate employees to strive for excellence while aligning their personal goals with the company’s objectives.
With approximately 323,000 employees on its roster, Infosys is one of the largest employers in the IT sector. The company’s performance appraisal process is not just a routine exercise; it reflects broader trends in the industry, where talent retention and employee satisfaction are increasingly critical.
Comparisons with Industry Peers
In a parallel development, Tata Consultancy Services (TCS), another major player in the IT services sector, is also conducting its performance evaluations. TCS employs a rating system that categorizes employees into four groups: A, B, C, and D, with A being the highest. According to a recent communication from TCS’s Chief Human Resources Officer, Sudeep Kunnumal, annual salary hikes for employees at the C3A level have been rolled out, effective September 2025, with high performers receiving double-digit increments.
This comparison highlights the competitive landscape of the IT industry in India, where companies are vying for top talent. As firms like Infosys and TCS navigate the complexities of employee compensation, they must balance financial prudence with the need to attract and retain skilled professionals.
Looking Ahead
As Infosys prepares to announce its second-quarter financial results on October 16, the outcomes of the performance appraisal process will be closely watched by both employees and industry analysts. The financial health of the company will play a significant role in determining the extent of salary increases and the overall employee experience.
In conclusion, the initiation of the annual performance appraisal at Infosys marks a pivotal moment for its employees, who are hopeful for a more favorable outcome this year. As the IT sector continues to evolve, the focus on employee development and satisfaction will remain paramount. The decisions made during this appraisal cycle could have lasting implications for the company’s workforce and its competitive standing in the industry.