Infosys pays average 70% bonus for first quarter; staff await clarity on salary hikes

Infosys, India's second-largest IT services firm, recently awarded its eligible employees an average performance bonus of 70% for the April-June quarter. This figure remains consistent with the previous quarter but is approximately 10 percentage points lower than the bonus granted a year ago. The company's decision to pay out bonuses comes amidst a challenging economic climate, driven by subdued discretionary spending, an uncertain macroeconomic environment, and rapid advancements in artificial intelligence.

Infosys reported a 12% increase in consolidated net profit year-on-year, reaching Rs 7,769 crore for the April-June quarter. However, the tech giant reduced its revenue growth guidance for the entire year. The average bonus payout varied between 65% and 80%, contingent on employees' job levels and performance categories. Employees in job levels 4 and 5 received higher payouts than those in job level 6. Top performers in job level 4 received an 80% bonus, while those in job level 5 received a 78% bonus.

Employees are eagerly awaiting details on the annual salary revisions, which are expected to be implemented in two stages. Those in job levels 4 and 5 are anticipated to receive the revisions within the next one to two months, while those in job levels 6 and above will likely receive them in January 2027. The company has not yet disclosed the specifics of the salary revisions.