Infosys declares 85% average Q3 bonus for employees after strong results

Improved variable pay for December quarter follows steady revenue momentum and deal wins, lifting employee sentiment even as technology stocks face pressure over automation concerns

Infosys has announced an average organisation-wide performance bonus payout of 85 per cent for the quarter ended December, according to a report by the Economic Times. This offers a morale boost to employees at a time when technology stocks are under pressure over concerns that artificial intelligence could automate large portions of IT services work.

 

The payout will be disbursed along with the February salary, according to an internal communication rollout, the report noted.

 

Employees said individual payouts ranged between 75 per cent and 100 per cent of target variable pay. Some reported receiving up to 15 per cent more than in the previous quarter, while a few said they received the full 100 per cent.

 

 

The company had paid an average of 75 per cent of the target bonus for the July–September quarter.

 

According to a person aware of the matter, who spoke to The Economic Times, the payout is the highest in FY26 so far and exceeds any quarter in the previous financial year.

Strong business performance

The higher payout follows a quarter marked by steady business momentum and deal wins. While announcing its third-quarter results in January, the company raised its revenue guidance, citing a strong performance and favourable demand environment.

 

At a town hall meeting last month, Chief Human Resources Officer Shaji Mathew had indicated that employees could expect improved variable pay compared with earlier quarters. 

 

Infosys has around 323,000 employees. The company completed its appraisal cycle for the period November 2024 to October 2025 and released individual ratings in December.

Awaiting clarity on salary hikes

Employees are now awaiting communication on annual salary revisions. Ahead of the town hall, several had sought clarity on timelines for increments.

 

Last year, the company issued salary revision letters in February, granting raises of between 5 per cent and 8 per cent to most employees, depending on performance ratings.

 

The latest payout comes even as technology shares witnessed volatility on concerns that rapid advances in AI could reshape demand for traditional IT services. However, the improved bonus may help stabilise employee sentiment within the sector.