Infosys Q1 staff bonus out & AI plays a worrying role

Infosys has maintained an average performance bonus of 70% for its eligible staff during the April-June quarter, according to sources. This figure is consistent with the previous quarter but marks a 10 percentage point decrease compared to the same period last year. The payouts for staff members vary between 65% and 80%, with different levels and performance categories receiving different bonuses.

Employees at job levels (JL) 4 and 5 received slightly higher payouts than those at JL6, with top performers at these levels earning 80% and 78%, respectively.

The company's bonus payout comes amid a challenging environment for the technology sector, characterized by slower discretionary spending, economic uncertainty, and the rapid advancement of artificial intelligence. The 70% payout was in line with strong business performance and successful deal closures in the previous quarter.

Infosys' workforce, numbering 328,062 employees, was evaluated across various categories, including "outstanding," "commendable," and "met expectations." A separate "non-applicable" category also received bonuses. The company has not responded to inquiries regarding the bonus payout.

In addition to the bonus, employees are anticipating updates on annual salary increases. Infosys has reportedly hinted at a two-phase hike rollout, with employees at JL4 and JL5 expected to receive revisions within the next one to two months, followed by JL6 and above in January 2027. Employee-wise performance ratings were released in December, following the company's appraisal cycle for November 2024-October 2025.

Salary revision letters were distributed in February, with most employees receiving increases of 5-8% based on their performance ratings, according to a previous ET report.