fazTimes media: Infosys, India's second-largest IT company, has been in the news again—this time about its new pay increase plan and what's in store for its nearly 300,000 workers. The story comes at a time when India's tech industry is dealing with global uncertainty and changing work environments. The company said that it had already raised wages twice this year, once in January 2025 and again in April 2025.

However, the company is still considering a third raise, leaving many workers uncertain about their next few months' pay. During Infosys's Q1 FY26 earnings call, Chief Financial Officer Jayesh Sanghrajka said, "We've already done the wage hike, and we'll have to decide when the next one will be."

Let us look at what this means for the local economy, the IT industry as a whole, and the people who work there.

A Mixed Picture of Infosys's Work

Infosys said that its combined net income rose by 9% in the first quarter of FY26, hitting ₹6,921 crore. At first glance, these numbers look excellent. But people are more careful about hiring and talent costs. BBC News says that IT spending around the world is slowing down because of rising prices, customers cutting back on spending, and project delays.

Big Indian IT firms, such as Infosys and TCS, must closely monitor their spending due to these economic factors. The company said that its profit margins fell by 100 basis points this quarter. This was mostly because of the recent pay raises and higher flexible pay.

The workers were pleased with their pay raises, but there is now a lot of talk about how to keep workers and make sure they are happy with their pay.

It's been two phases, but what's next?

The chief financial officer (CFO), Sanghrajka, said on the earnings call that Infosys started the first round of pay raises in January 2025 and the second round in April 2025. The company's budget already incorporates the results of these pay changes.

Sanghrajka, however, would not confirm whether there would be another pay raise in the future, stating that a decision had not yet been made.

Different Pay—A Possible Help?

Infosys tried to make things better by giving workers more flexible pay this quarter. But experts say that flexible pay is not the same as regular pay raises. This is especially true for middle- and low-level workers who depend on regular raises to plan their finances.

Pay that varies based on performance can change from one year to the next. "It helps in the short term, but workers still want guaranteed raises every year," said Meera Balan, an IT expert, in an interview.

Increasing turnover—a reason to be worried

The rising rate of employee turnover at Infosys is another problem that is getting more attention. The rate went up from 14.1% in March to 14.4% in June 2025. Even scarier is the rise from the year before—from 12.7% in June 2024 to 170 basis points now.

In the IT field, employee turnover often shows how people feel about their job, their relationship to the company, and their faith in its future. A steady rise could mean that people are looking for better jobs, especially in new businesses or product-based companies that pay more. "The Indian market for IT workers is changing all the time right now."

It is essential to know when the next rise will happen. Leaders who don't talk to people are making everyone nervous. The cost of living has gone up a lot in the places where Infosys works.

A normal 2BHK flat in Whitefield, Bengaluru, now costs more than ₹30,000 a month to rent. It used to cost ₹22,000 a month. People who work there say it's harder to live a middle-class life without regular pay raises.

Pattern in the Industry or One-of-a-Kind Case?

Infosys isn't the only company being careful about raising wages. Al Jazeera says that because of problems in the world economy, many of India's biggest IT companies are delaying or cutting back on pay raises this year. Customers in the U.S. and Europe, which are big markets for Indian IT services, are spending less on IT.

However, HCLTech and Tech Mahindra have still done their regular performance reviews and given raises, even though they aren't very big.

Moving Forward: What Should Employees Expect?

There aren't any plans for a third raise right now, but workers can look forward to:

Bonuses are based on how well they do every three months
Increases in pay that come with promotions
Programs that teach them how to take on bigger and better jobs
Project incentives, especially in AI, hacking, and cloud computing

But many HR experts say these are only short-term fixes. Workers will need to feel like they are getting paid fairly in the long run. "Pay that stays the same can make workers less motivated."

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