HCL Tech puts off salary hikes for senior staff, while offering increases to junior employees, according to a new report

HCLTech, India’s third-largest IT services company, has reportedly rolled out salary hikes for junior employees during the October-December quarter, with modest increments of 1-2% and 3-4% for top performers. This is lower than the company’s earlier promises of 7% average annual pay hikes and 12-15% for top performers. The salary hikes were limited to employees in the E0, E1, and E2 bands, representing those with up to 10 years of experience. Mid- and senior-level employees (E3 and above) have not received salary revisions, with two employees at the E3 level stating they have not received a hike in at least two years. HCLTech management had earlier announced that compensation reviews for senior and management-level employees were skipped in FY24. This move is part of a broader trend, with Infosys also delaying salary increments to the fourth quarter of the current financial year. The delay is seen as a strategy to protect profit margins amidst reduced discretionary spending and a subdued demand environment.