Most Infosys employees get higher bonus after strong quarterly results

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Infosys Ltd. has rolled out higher performance bonus to eligible employees on better-than-expected first quarter earnings for India’s second largest IT services firm.

The system interventions will be implemented from March 10, 2025 onwards.(Reuters)

The average performance bonus payout stood at 80% for the April-June quarter as against 65% for January-March, according to an internal email seen by The Economic Times. The percentage differed based on individual performance and contributions during the quarter.Meaning, the bonus payout was 75-89% in Q1 FY25 as against 50-70% in Q4 FY25.

Infosys did not respond to an email seeking comment.

Who Got How Much

A majority of Infosys’ 323,000 employees are in Position Levels 4, 5 and 6.

PL4 includes senior engineers, system engineers, technology analysts and consultants, while track leads are in PL5. The PL6 includes managers, senior managers, delivery managers and senior delivery managers, but excludes vice presidents.

PL4 employees have received a performance bonus of 80-89%, while PL5 staff are entitled to 78-87%. For PL6, the outgo stood at 75-85%. This is based on their rating from “outstanding” to “needs attention”. The bonus will be paid along with the salary for August.

To be sure, Infosys pays quarterly performance bonus to employees in PL6 and below—the rank and file of the company. This does not include vice presidents.

“In line with our organisational goals on building a high-performance work culture, we have continued to drive performance differentiation while closing bonus payouts as well,” the internal communication seen by ET stated.

Morale Boost

Infosys’ bonus payout comes at a time when the wider IT services industry has seen delayed salary hikes and layoffs from the likes of Tata Consultancy Services Ltd., HCL Technologies Ltd. and Wipro Ltd. TCS, in fact, has announced plans to lay off 2% of its workforce—about 12,000 employees—during the course of the year.

Infosys, meanwhile, handed two rounds of annual salary hikes for the previous fiscal, in the range of 5-8% for eligible employees.

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