Infosys rolls out 65% bonus for Q4 FY25, down from previous quarters

Infosys distributed an average a bonus of 80 per cent in Q3 FY25, and 90 per cent in Q2 FY25, Moneycontrol reported

India's second-largest IT services firm, Infosys, has announced an average employee bonus of 65 per cent for the fourth quarter of FY25, Moneycontrol reported on Thursday, citing sources. The quarterly bonus will roll out with the May salary.

 

In comparison, the firm rolled out an average bonus of 80 per cent in Q3 FY25, and 90 per cent in Q2 FY25, the report added. A senior Infosys employee told The Economic Times that this is the lowest bonus he has received in his ten years with the company.

 

What did the company say?

 

In an email regarding the bonus addressed to the employees, Infosys said, "Amidst the complex macro-economic environment in Q4, we remained client-focused and responsive to market needs."

 

 

According to media reports, the IT major had earlier informed some employees that their performance bonuses for the fourth quarter of financial year 2024-25 will be lower, amid declining profits.

 

 

Who gets the bonus?

 

Infosys employees and Job Level 5 and 6 are usually awarded the bonus, reported The Economic Times. This includes team leaders, managers, senior managers, and delivery managers.

 

A weak quarter

 

The bonus roll out comes shortly after Infosys reported a Q4 net profit of ₹7,033 crore — an 11.7 per cent drop from a year earlier. The decline was attributed to increased selling and marketing expenses. However, its revenue grew 7.9 per cent to ₹40,925 crore.

 

While the profit was above estimates, revenue missed Street expectations. While announcing the results, the company also predicted weaker than expected revenue growth for FY26.

 

Cloudy journey ahead for Indian IT companies

 

Infosys is not the only IT company signalling a difficult year ahead, with global economic uncertainty, tariff disruptions and cautious client spending clouding the sector’s outlook.

 

India's largest IT firm, Tata Consultancy Services, last month said that it would defer annual wage hikes to its 607,000 employees due to the business uncertainties triggered by the tariff issues. However, it added that it has paid out 100 per cent of the Quarterly Variable Allowance (QVA) to more than 70 per cent of its workforce for the January-March quarter.

 

Wipro, on the other hand, has yet to make any announcements regarding salary hikes.

 

Infosys distributed salary revision letters to its employees in February, with most getting a 5 to 8 per cent hike. Moreover, for Q3 FY25, the company reportedly paid an average 80 per cent performance bonus to eligible employees across the delivery and sales units.