Ahead of annual salary hike, Narayana Murthy's Infosys offers lower...

Infosys news: One of India’s leading IT services firms, Infosys, has announced a performance bonus averaging 80 per cent of the target for Q3. The company has offered a 5-10 per cent lower bonus from the previous quarter, ET reported quoting sources. The IT firm, whose market cap is Rs 7.50 lakh crore, is expected to roll out annual salary hikes by March 2025. 

Moreover, the variable pay distribution for staff in delivery and sales divisions has seen a reduction of up to 10 percentage points compared to the previous quarter. These staff members constitute the majority of the Bengaluru-based company's 323,000-strong workforce. Staff received approximately 85 per cent of their variable pay during the July to September period.

"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. Despite Infosys increasing its revenue forecast for the current fiscal to 4.5%-5.0%, reduced pay-outs were anticipated.

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What a staff member said

Speaking to the news outlet, a staff member said: "There has been a 5-10-percentage-point drop compared to last quarter, when some people even got 100% of the performance bonus. Looks like Infosys is conserving funds to fund pay hike expenses." Another employee said, "This time it is, employees received an average of around 75% at unit level rating, 100% for 'outstanding' rating, 85% for 'commendable' rating and 70% for 'met expectations' rating for JL5 & JL6".

• JL5 designation applies to team leaders, whilst lower positions encompass software engineers, senior engineers, system engineers and consultants.
• JL6 and higher positions include managers, senior managers, delivery managers and senior delivery managers, excluding vice presidents.