Meltdown forces Infosys to freeze wages, hiring

April 15th, 2009 - 5:48 pm ICT by IANS  

Bangalore, April 15 (IANS) The impact of global recession has forced Infosys Technologies, India’s second largest IT bellwether, to freeze wage hike and fresh hiring in new fiscal 2009-10, a senior official said Wednesday.
“Employees will not get salary hike or promotions this fiscal. At the same time, there will be no cut,” Infosys board member T.V. Mohandas Pai told reporters here on the margins of a news conference at the company’s campus.

In fact, Pai added, the board members have taken a “steep cut of 58 percent in variable pay, which accounts for 50 percent of their total compensation”.

On the firing front, the global software major will not make any fresh offers this fiscal, but honour the appointment letters given in the last fiscal to about 18,000 people, including 16,000 freshers and 2,000 laterals. About 1,000 laterals are being hired overseas.

“We are not going to recruit anyone this year in view of the uncertainty. We will, however, absorb all the 18,000 people to whom offer letters were given last time despite staggering their joining dates over the fiscal,” Pai said.

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