BANGALORE: Country's second largest software services firm Infosys has raised salaries of its employees in the country by 6-7 percent and by 1-2 percent for onsite workers, effective April 1.

"We have increased salaries. We have given salary hikes of 6-7 percent for offshore and 1-2 percent onsite employees, effective April 1," Infosys CFO Rajiv Bansal said.

The increase in salaries and promotions that have been rolled out and the investment in new visas is likely to impact the first quarter margins by about 3 percent, he added.

Infosys added 10,997 employees (gross) in the last quarter of FY'14 and 39,985 during the fiscal to take its total headcount to 1,60,405 people.

"This is the second time we are giving compensation increase over the last nine months. Nine months back, we had given a compensation increase of 6-8 percent offshore," Infosys CEO and MD S D Shibulal said.

The company has been showering its employees with incentives including promotions and salary hikes in a bid to boost morale and check rising attrition.

The Bangalore-based company, which has trailed peers TCS and Cognizant on growth, is also looking at weeding out non-performers to improve efficiency.

People following developments at the firm said focus is on retaining quality talent, while letting go non-performers, something founder and executive chairman NR Narayana Murthy has reiterated at various fora.

About 12,500 employees have been promoted since October. Infosys, as part of performance improvement programme, allows 'poor performers' to undergo training to get into shape. These employees then undergo a review and those who fail are asked to leave.

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