Indias second-largest IT services firm Infosys has decided to delay its annual salary hikes to the fourth quarter of FY25. The last round of salary increases was implemented in November 2023 making this decision a response to ongoing challenges in the global demand environment. Infosys Delayed Salary Hikes: Unlike its usual practice of rolling out wage hikes earlier in the year Infosys has deferred this process due to weak discretionary spending delayed client budgets and macroeconomic uncertainties claimed the Money Control report. During a press conference after Q2 results CFO Jayesh Sanghrajka confirmed that the hikes would occur in phases with some employees receiving increases in January and the rest in April 2025. Salary Hike In IT Sector Infosys is not alone in this strategy. Competitors like HCLTech LTIMindtree and L&T Tech Services have also skipped salary increments in recent quarters to manage costs and maintain profitability.  Infosys reported a 2.2% quarter-on-quarter increase in net profit for Q2 FY25 amounting to ₹6506 crore which fell short of analysts’ expectations. Margins improved by 10 basis points driven by reduced onsite costs better utilization rates and operational efficiencies. Challenges In Q3 FY25: Despite no wage hikes brokerage firm Motilal Oswal expects a margin decline in Q3 FY25 due to furloughs and fewer working days. However gains from pricing adjustments subcontractor cost optimization and the Project Maximus margin improvement plan are expected to partially offset these challenges. Some delivery teams within Infosys continue to offer selective salary increments to top performers particularly those working in high-demand areas like artificial intelligence. Employees in general are adapting to the tough market conditions with many perceiving job stability itself as a form of reward. With a phased approach to wage hikes and ongoing cost-management initiatives like Project Maximus the company aims to strike a balance between financial stability and employee retention.