Information technology giant Infosys Ltd. has said that it has not decided on the next salary increment for its staff. Infosys had recently implemented a wage hike. Following the Q1 FY26 results, Infosys’s Chief Financial Officer Jayesh Sanghrajka remarked that the company had recently distributed a “higher” variable pay component, which, in combination with the wage hike, has already affected the company’s margins by 100 basis points in the recent quarter.
“In the margin of this quarter, we had 100 basis points of impact on account of the wage hike as well as the higher variable pay that we paid to our employees this quarter, so that’s already done. Having done the wage hike very recently, you know, next one we’ll have to decide when,” he elaborated.
The wage increments at Infosys were implemented in two phases, with the first part effective from January 2025 and the second phase from 1 April 2025. Sanghrajka explained: “We did a wage hike already. First part of our hikes was effective January 2025; the second phase is already rolled out, effective 1 April 2025, and the impact of that is already baked in.”
This move aims to retain talent amid an increasing attrition rate, which reached 14.4% in June 2025, compared to 12.7% in June 2024. The rising attrition rate is a concern, as it reflects the number of employees choosing to leave the company over a 12-month period, indicating potential challenges in employee satisfaction or market competition.
Workforce and hiring
In terms of workforce dynamics, Infosys has seen its total headcount rise to 323,788 employees as of 30 June 2025, indicating an addition of 8,456 employees year-over-year. “If you look at our hiring numbers, our overall headcount has remained constant at this point in time, and our utilisation is at its peak at 85%. So, we will continue hiring. We expect to continue hiring in line with what we announced at the beginning of the year, so there’s no change there,” Sanghrajka stated, reflecting the company’s commitment to maintaining workforce levels and operational efficiency.
Infosys Q1 FY26 results
Infosys, led by CEO Salil Parekh, reported an 8.7% year-on-year (YoY) rise in net profit to Rs 6,921 crore for the June quarter, surpassing analyst expectations of 4–7% growth. In the same period last year, the IT major had posted a profit of Rs 6,368 crore.
Revenue grew 7.5% YoY to Rs 42,279 crore, up from Rs 39,315 crore. The operating margin stood at 20.8%, marginally down from 21.1% a year ago. Both revenue and margin figures broadly met Street estimates.
The company raised its FY26 constant currency revenue growth guidance to 1–3%, from the earlier range of 0–3%. It maintained its operating margin outlook at 20–22%, in line with analyst projections.
Industry analysts suggest that Infosys’s decision to delay further wage hikes may be a strategic measure to cushion its margins against rising costs while maintaining competitive pricing. Despite this, the company has revised its fiscal year 2025-26 constant currency revenue growth guidance, raising the lower end to 1% while retaining the upper end at 3%, indicating confidence in navigating the challenging economic environment.
“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees”, said Salil Parekh, CEO and MD. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships”, he added.
Infosys shares closed 0.27 per cent higher at Rs 1,574.40 on BSE.
