Infosys cofounder N. Narayana Murthy was controversial for saying working hours should increase to around 70 hours a week, arguing for the development of India. But N. Narayana Murthy’s Infosys has persisted in denying their employees an annual raise by deferring the increase to instead be implemented the last quarter of the fiscal year 2024-2025.

Cause of Salary Deferral

Salary increases have always been given in the final month of the year but the circumstances of global uncertainty forced Indian IT firms, including Infosys to cut back on expansion spending as there was an observable reduction in non-essential client servicing. This is not the first time the company has had to delay a scheduled salary hike, as the company is in the middle of a financial crisis, with the last raise in November 2023, payroll projections made during periodic assessments were lower than expected retainer fees.

Social Dynamics And The Narayana Murthy Movement

Murthy has a strong opinion on the work culture at Infosys and their relationship with Narayana Murthy. Narayana Murthy is against the concept of work life balance as his recent statements regarding this matter have generated heated discussions on what people consider reasonable working standards. Narayana Murths dividends evolved in several directions simultaneously increasing the wage limit alongside commenting on societal perception to the wage raises.

IT Sector Trends: Are Things Getting Worse?

Other IT firms, such as LTI Mindtree and HCL Tech, have also put salary hikes on hold so that they can make a profit during tough times. Infosys is not the only one to have put them off.

Looking for Balance between Profitability Levels and Employee Satisfaction

The companies have to make a choice between delaying hikes or meeting salary increases on time that will lead to greater attrition. Remember that the IT sector is at a difficult period and such salary hikes indicate the effort to readjust to the new economic realities.

It is important that the IT sector is struggling and decisions like these are for the broader good of the sector.