More bad news for Narayana Murthy’s Infosys employees as bonus drops to…, variable pay reduced to…

Infosys revised variable pay structure and upcoming salary hikes is as per the employees performance differentiation.

Infosys, one of India’s leading IT services firms, has announced the disbursal of performance bonuses averaging 80% of the target for qualifying employees in the quarter ending December 2024. The announcement has been made prior to the annual salary revisions scheduled for March-end, according to sources cited by The Economic Times report.

Infosys Bonus And Variable Pay

The variable pay for employees in delivery and sales divisions who are part of the majority of Infosys 3,23,000 workforce, has been reduced by 5-10 percentage points compared to the previous quarter.

In the previous quarter (July-September), employees received approximately 85% of their variable pay, with some achieving 100% payouts.

For this quarter employees with outstanding performers received 100% and commendable performers received 85% and those meeting expectations received 70% on average.

A company communication stated “In line with our organisational goals on building high performance work culture, we have continued to drive performance differentiation while closing bonus pay-outs as well,” stated the company’s communication to certain staff members.

Revised Pay Timelines

Employees at Job Level 5 (JL5) and below, which includes team leaders, software engineers, senior engineers, and consultants, will see revised pay effective January 1, 2025. Those at Job Level 6 (JL6) and above, encompassing managers, senior managers, delivery managers, and senior delivery managers, will receive revised pay starting April 1, 2025.

Infosys Q3 Results 

Despite reduced bonus payouts, Infosys increased its revenue forecast for the fiscal year to 4.5%-5.0%. The company reported good results for the October-December quarter, wherein net profit rose by 11.4%, reaching $800 million and revenue grew by 7.6%, totaling $4.9 billion.

An internal email to employees acknowledged their contributions, stated “Q3 was marked by strong, broad-based growth, driven by our strategic digital offerings, market positioning, and structured approach to margin expansion. This success is a reflection of your dedication, and we deeply appreciate your efforts.”