hcltech deferred salary increment of senior employees

There is good news for the employees of HCLTech, India's third largest IT company. The company is increasing salaries for junior employees during the October-December quarter. Most of the junior employees have received nominal pay hikes of 1-2 per cent, while top performing employees have received hikes of 3-4 per cent.

According to a report by Moneycontrol, the increase in the salaries of junior employees is much less than the earlier statements given by the management. It promised an average annual salary increase of seven percent and a 12-15 percent pay rise for top performers. Barring Tata Consultancy Services (TCS), major IT companies have taken a long time to increase salaries in FY 2025. Usually, salary increases are implemented at the beginning of the financial year.

The report states thatThis step has been taken as a strategy to protect profit margins amid the current challenges including reduced expenditure and reduced demand. Sources told Moneycontrol that HCLTech's pay hike has so far been implemented for junior employees in E0, E1 and E2 bands. These employees are employees with up to 10 years of experience. However, middle and senior level employees (E3 and above) have not been informed of the pay hike yet. According to a Moneycontrol report, two E3 level employees say that their salaries have not increased for at least two financial years.

HCLTech's management had earlier confirmed that the compensation review for senior and management level employees in FY24 had been abandoned. HCLTech is not the only company to postpone salary hike. Infosys has also postponed its salary hike till the fourth quarter of the current financial year.