Infosys, India’s second-largest IT services company, has announced an 85% average performance bonus payout for its eligible employees for the second quarter (Q2) of the fiscal year 2024-25. This bonus will be credited along with the November salary to mid- and junior-level employees across delivery and sales units. These employees make up the bulk of Infosys’s workforce, which is over 3.15 lakh strong.
Key Points:
- Performance and Payouts: The bonus payout varies based on individual employee performance and contribution for the quarter. The 85% average is slightly higher than the 80% average bonus given in the previous quarter (June 2024). It represents an increase from the 60% average bonus in the March 2024 quarter.
- Company’s Performance: Infosys reported a 4.7% YoY rise in its consolidated net profit for Q2FY25, amounting to Rs 6,506 crore. Revenue also increased by 5.1% to Rs 40,986 crore, driven by growth in the financial services sector and the ramp-up of mega-deals.
- Guidance and Growth: Infosys raised its revenue guidance for FY25 to 3.75-4.5%, up from the previous estimate of 3-4%, reflecting strong performance during the quarter.
- Employee Bands: The bonus payout applies to employees in the E0-E6 bands, which range from freshers to mid-level positions. Senior employees (E7 and above) are not part of this payout. The company has not disclosed unit-wise payouts to avoid internal dissatisfaction.
- Comparison with TCS: Infosys employees have mentioned that the company’s bonus payout for Q2 is better than that of its larger competitor, Tata Consultancy Services (TCS), which is believed to have given a 50-60% average bonus, with higher payouts for those working from the office.
- Return-to-Office Policy: Unlike TCS, Infosys’s bonus payout is not linked to its return-to-office policy, which requires select employees to work from the office for at least 10 days a month.
- Salary and Appraisal Cycle: After freezing salary hikes in FY22, Infosys resumed its annual appraisal cycle starting in October 2023, with salary revisions scheduled for January 2025 for selective employees and April 2025 for the rest.
This bonus payout is part of the company’s ongoing efforts to reward employees for their contributions amid the company’s growth, particularly in areas such as Cloud and Generative AI, which have been central to Infosys’s market leadership.
