Most employees in software firms in the country will get low salary hikes this year, with the sector struggling to overcome a slowdown in business.
Increased automation, pricing pressures from clients, and a shift to digital and cloud have adversely affected the revenues of the information technology (IT) companies over the past year.
At most of these firms, senior managers will have to contend with salary hikes and promotions being deferred by at least three months. Turnaround in business is likely to bring salary increases quickly. Average increment across companies is largely in proportion with the revenue growth, varying between 6 per cent and 8 per cent.
Tata Consultancy Services, the largest IT-services firm in the country, would give 8-10 per cent hikes to employees.
Infosys, the second-largest firm in the sector, will give only 4-9 per cent increase to 85 per cent of its employees. Senior employees will get their hikes only after at least three months.
At Wipro, hikes effective from June 1, will be low for most. Top performers will, however, have been rewarded with relatively higher increments.