HCLTech Rolls Out Modest Pay Hikes for Junior Employees, Senior Staff Left Waiting: Report
HCLTech, India’s third-largest IT services company, has started implementing wage hikes for junior employees during the October-December quarter, according to a report from Moneycontrol on Tuesday. This follows a similar move by Infosys, the second-largest IT services firm in the country, which delayed its annual wage increases to the fourth quarter of the current financial year (Q4FY25).
The pay increases at HCLTech reportedly range from 1-2 percent for most employees, with top performers receiving hikes of 3-4 percent. However, this report contradicts previous statements from the company’s management, which had indicated an average annual wage hike of 7 percent, with a 12-15 percent raise for top performers.
While Tata Consultancy Services (TCS) implemented its wage hikes as usual, other major IT firms in India have delayed their pay adjustments for FY2025, typically expected earlier in the fiscal year. This delay is believed to be a strategy to protect margins amid economic uncertainties, such as low discretionary spending and a challenging demand environment.
Sources told Moneycontrol that HCLTech’s wage hikes have been applied to junior employees in the E0, E1, and E2 levels, typically those with up to 10 years of experience. However, employees in the E3 band and above—those in mid- to senior-level positions—are still waiting for their appraisals, with some senior staff members not receiving pay raises for at least two years, and up to three years for E4-level employees.
HCLTech addressed the report, explaining that its compensation review cycle takes into account factors such as lateral hires and individual performance. The company reiterated that the average pay increase for employees in India would be around 7 percent, with top performers receiving raises in the 12-15 percent range. The company’s Chief People Officer, Ramachandran Sundararajan, confirmed that the increases would be effective starting this month.
In a similar move, Infosys deferred its annual wage hikes to the fourth quarter of FY25, citing challenges in the global demand for IT services, such as low discretionary spending, delayed client budgets, and macroeconomic volatility. Other competitors, including LTIMindtree and L&T Tech Services, have also postponed salary increases in a bid to maintain profitability.