Infosys has distributed performance bonus letters to qualifying staff for the January-March (Q4FY2024-25) quarter on Thursday. A substantial portion of the workforce noted that the payout was considerably reduced compared to the previous quarter.
Earlier this week, reports suggested that the fourth-quarter bonus would be reduced compared to previous periods. Staff members anticipated lower bonuses after receiving indications during a recent meeting with delivery managers and HR representatives at a major delivery unit.
Sources informed ET that the majority of eligible staff received 50% of their quarterly target amount, whilst some were awarded 70%, and select outstanding performers received higher amounts.
The organisation announced via a short internal message that the bonus would be disbursed with May's salary. Usually, this notification is accompanied by a standard management message discussing business outlook and growth prospects, along with employee appreciation. However, sources indicated that this customary message was absent on this occasion.
Also Read | TCS gives 100% quarterly variable pay to 70% staff; remaining workforce sees lower numbers
The company provides performance bonuses to employees at job level 5 (JL5) and JL6, excluding entry-level positions. JL5 comprises team leaders, whilst lower positions include software engineers, senior engineers, system engineers and consultants. Management positions at JL6 and above encompass managers, senior managers, delivery managers and senior delivery managers, though vice presidents are not included.
A long-serving employee mentioned that during his decade-long tenure at Infosys, the lowest bonus he had previously received was 60% two years ago, making this current payout even lower. He noted that during good periods, he had received his full eligible amount.
The software giant had previously awarded an average performance bonus of 80% of the target to qualifying staff across delivery and sales divisions for the December quarter. These divisions comprise the majority of their workforce, which exceeds 323,000 employees. The Bengaluru-based organisation distributed salary revision letters in February, offering increases between 5-8% for most staff members.
The software services sector's current difficulties, including tariff uncertainties, growth issues, and conservative client spending, have resulted in reduced bonus payments. Staff members were informed during the conference call that the company's decreased fourth-quarter profits led to smaller bonus distributions.
Infosys reported an 11.7% year-on-year reduction in net profit to Rs 7,033 crore in the previous month. The revenue forecast for 2025-26 indicated low single-digit growth.
Senior leadership reassured staff during the call that this situation was temporary, promising to consider enhanced bonus recommendations for qualifying high-performing staff once business growth recovered.
Also Read | Dealing with Trump’s tariffs: Apple exports 97.6% of iPhones to US from India to preempt higher tariffs on imports from China
Earlier this week, reports suggested that the fourth-quarter bonus would be reduced compared to previous periods. Staff members anticipated lower bonuses after receiving indications during a recent meeting with delivery managers and HR representatives at a major delivery unit.
Sources informed ET that the majority of eligible staff received 50% of their quarterly target amount, whilst some were awarded 70%, and select outstanding performers received higher amounts.
The organisation announced via a short internal message that the bonus would be disbursed with May's salary. Usually, this notification is accompanied by a standard management message discussing business outlook and growth prospects, along with employee appreciation. However, sources indicated that this customary message was absent on this occasion.
Also Read | TCS gives 100% quarterly variable pay to 70% staff; remaining workforce sees lower numbers
The company provides performance bonuses to employees at job level 5 (JL5) and JL6, excluding entry-level positions. JL5 comprises team leaders, whilst lower positions include software engineers, senior engineers, system engineers and consultants. Management positions at JL6 and above encompass managers, senior managers, delivery managers and senior delivery managers, though vice presidents are not included.
A long-serving employee mentioned that during his decade-long tenure at Infosys, the lowest bonus he had previously received was 60% two years ago, making this current payout even lower. He noted that during good periods, he had received his full eligible amount.
The software giant had previously awarded an average performance bonus of 80% of the target to qualifying staff across delivery and sales divisions for the December quarter. These divisions comprise the majority of their workforce, which exceeds 323,000 employees. The Bengaluru-based organisation distributed salary revision letters in February, offering increases between 5-8% for most staff members.
The software services sector's current difficulties, including tariff uncertainties, growth issues, and conservative client spending, have resulted in reduced bonus payments. Staff members were informed during the conference call that the company's decreased fourth-quarter profits led to smaller bonus distributions.
Infosys reported an 11.7% year-on-year reduction in net profit to Rs 7,033 crore in the previous month. The revenue forecast for 2025-26 indicated low single-digit growth.
Senior leadership reassured staff during the call that this situation was temporary, promising to consider enhanced bonus recommendations for qualifying high-performing staff once business growth recovered.
Also Read | Dealing with Trump’s tariffs: Apple exports 97.6% of iPhones to US from India to preempt higher tariffs on imports from China
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