Employees of information technology services provider Infosys will receive much lower than expected pay increments in FY2015, according to some media reports.

Citing unnamed sources, the Business Standard reported has reported that Infosys told its employees in India on Wednesday that they would receive pay increments of 5-7 per cent in the next financial year. The reported increment is well lower than employees' average expectation of 10-12 per cent.

Commenting on the report, a senior analyst with a domestic brokerage house said, "Everyone was expecting at least 10-12 per cent more. Five to seven per cent is really low. Already the company is seeing elevated levels of attrition and this is more bad news for that front."

Soon after N R Narayana Murthy return to Infosys as executive chairman last year, the company announced a pay increment of an average 8 per cent, but staff attrition continued to be steep. For the third quarter of this fiscal, it was 18.1 per cent, highest among peers. The last pay increment was announced by the company in July 2013.

When contacted, the Bangalore-based company refused to share details about the development, saying it would announce the pay increments during its financial results announcement on April 16, 2014.

Meanwhile, Narayana Murthy has announced that the company's internal board would undergo another structural change in 2015. Speaking at a Deutche Bank investor meet in Bangalore yesterday, he said CEO Shibulal would retire in March next year; while Board member Srinath Batni and executive vice chairman Kris Gopalakrishnan would leave November this year and in April 2015, respectively. Around a month back, Infosys realigned its structure by generating two presidential posts to replace its executive council.

Source: Top News