 "Amid muted earnings, Infosys to hand out 80% variable pay for Q2FY24")
IT major Infosys is going to award quarterly performance bonuses to its employees for the July-September period at an average of 80 per cent this month, The Economic Times (ET) has reported.
The variable pay applies to employees working at position level 6 (PL6-manager) and below band. In other words, employees below the manager category, barring those working at the entry-level, will receive variable pay, the ET report said.
While the average payout at Infosys will be 80 per cent, the actual payout will differ based on an individual's performance and contribution during the quarter, the newspaper said, citing the HR head of the engineering team at Infosys.
An official communication cited in the ET report said, "This is to keep you all informed that the quarterly performance bonus payout for Q2FY2024 (second quarter of the financial year 2023-24) will happen in November 2023 payroll for all eligible employees."
Unit delivery managers have been mandated to finalise the payout distribution for their respective units. The eligible employees will be informed about their respective payouts soon, the ET report stated.
Muted revenue in the IT industry
More From This Section
The country's second-largest IT firm, Infosys, stopped salary hikes in the financial year 2022-23 to save cash and began its annual appraisal cycle in October, the ET report said. The IT sector has faced challenges as the Western markets have struggled with the possibility of a recession. Most clients for Indian IT companies are based in the USA and Europe.
Pause on fresh recruitment
Most IT companies have registered a drop in headcount as they have cut hiring to control expenses. The $245 billion IT industry has struggled due to macroeconomic concerns. Rising geopolitical tensions- the latest being the Israel-Palestine conflict- have also added to the industry's woes, resulting in tightening IT spending.