Infosys bonus payout: IT major to give 90% average performance bonus to eligible employees for Q2FY25

Infosys bonus payout: Information technology (IT) Infosys is handing out a 90 per cent average performance bonus to eligible employees for the July-September quarter of the current fiscal year (Q2FY25). The payout, which will be disbursed with November-end salaries, covers mid-to junior-level employees across delivery and sales units, which comprise the bulk of its 3.15 lakh workforce. 

According to news agency PTI, while the Bengaluru-headquartered software services major pays an average performance bonus of 90 per cent, the percentage will differ based on individual performance and contribution. The performance bonus averaged about 90 per cent in Q2FY25, slightly higher than the 80 per cent given in the preceding April-June quarter (Q1FY25).

According to business news daily The Economic Times, India's second-largest IT services company announced the bonus payout in an email sent to its eligible employees. ET reviewed the email, which is as follows:

“In Q2, we delivered a strong performance with broad growth, reinforcing our market leadership. This success is a testament to your unwavering dedication, our strategic focus on margin performance and our industry-leading expertise in Cloud and Generative AI. Your commitment has been instrumental in building our capabilities and delivering exceptional value to our clients. Thank you for your invaluable contributions; we look forward to a future with endless possibilities with you,” the email read.

According to The Economic Times, the performance bonus average figure comprises payouts to employees at band six (E6) and below. At Infosys, the classification of E0 – E2 employees ranges from freshers to technical leaders, and the E3 – E6 employee band includes mid-level positions. Those at E7 and above are the senior-level employee base.

According to the business newspaper, the latest average bonus payout is among the best since the pandemic, driven by a strong July to September growth quarter for the IT giant. It also marks a sharp markup over the 60 per cent average bonus rolled out in the March quarter of FY24.

Infosys employees also await the September-October appraisal cycle revision for the fiscal year 2023-24. During the latest second-quarter earnings conference in October, Infosys CEO and managing director Salil Parekh disclosed that a salary hike would be effective from January 2025. Selective employees will first receive the appraisal revision, followed by others in April 2025.

Infosys Q2 Results

Last month, Infosys posted a nearly five per cent rise in its second-quarter net profit and raised revenue guidance for the year, citing a broad-based recovery in demand and ramp-up of mega deals, particularly from its key financial industry clients. The technology services bellwether raised its revenue guidance for the full fiscal year for the second consecutive quarter.

Infosys expects constant currency revenue growth between 3.75 per cent and 4.5 per cent for the financial year April 2024 to March 2025, higher than its earlier guidance of three to four per cent. Infosys CEO and MD Salil Parekh termed this a "huge upward movement" in growth guidance. The upward revision came on the back of a ramp-up of mega deals.

Infosys reported a 4.7 per cent rise in consolidated net profit to ₹6,506 crore, compared to ₹6,212 crore in the corresponding period last year. Revenue from operations in Q2FY25 rose 5.1 per cent to ₹40,958 crore, compared to ₹38,994 crore in the year-ago period. The results indicate a steady increase in client spending at the leading software services exporter, which earns over 80 per cent of its revenue from Western markets.