Infosys trims variable bonus payment to 65%, cites business condition

Most IT services companies expect near-flat growth in FY due to macroeconomic uncertainty

Infosys has given employees an average performance bonus of 65 per cent in the fourth quarter of FY25, citing macroeconomic uncertainty.

 

The bonus is meant for employees up to band 6, which covers managers and senior managers, and it will be given along with salaries for May, said the IT services company in an internal communication. ‘Business Standard’ has seen the communication and contacted the company for comment. Infosys gave average bonus payments of 90 per cent and 80 per cent in the December and September quarters, respectively. 

 

 

Information technology services companies have been conservative in paying bonus or variable amounts of pay packages for the fourth quarter due to muted client spending and lack of visibility into deals. Most of them have guided for near-flat growth in FY26.

 

Infosys said last month it expects flat revenue in FY26 at worst and 3 per cent growth at best on a constant currency basis as clients review costs and hold discretionary spends.

 

Larger rival TCS cut variable pay for employees last month. As many as 70 per cent of personnel received full quarterly variable allowance but the rest, mostly senior employees, had their variable payouts curtailed. TCS has also deferred annual appraisals, which usually kick in from April, citing challenging market conditions.