Infosys will offer its employees 80% variable compensation, for the September quarter

20 Nov 2023 , 03:08 AM

This month, Infosys will pay out an average of 80% in quarterly performance bonuses to qualified employees for the July–September period.

The variable pay is scheduled to be paid to employees at position level 6 (PL6-manager) and below band, which translates to those below manager category, excluding entry level. According to an official statement from Infosys’ engineering team HR head, each employee’s compensation would vary depending on their performance and contribution for the quarter, with an average of 80%.

‘This is to inform all of you that all eligible employees will receive their quarterly performance bonus payout for Q2FY2024 in November 2023 payroll.’

According to the statement, unit delivery managers will decide how to divide the reward for their particular units this week and notify the qualified workers.

The Bengaluru-based IT behemoth, which had stopped compensation increases in FY23 to save money, had begun its yearly review cycle in October.

The September quarter, for which the second-largest software services exporter in the nation is paying the incentive, saw modest revenue growth recorded by Infosys and other top-tier IT companies. This coincides with the company’s payment of a performance bonus.

The 80% payout is greater than the preceding quarters in FY22, when payouts varied from 60% to 70%, but it is comparable to what it paid in the first quarter.

‘Dear Infoscion, despite the difficult climate, we were able to stay relevant and lay a strong platform for future market share expansions in Q2… The email announcing the compensation said, ‘You are essential to our organization’s success, and we look forward to an optimistic quarter ahead with you.

The yearly assessment cycle at Infosys begins in October and finishes in September of the subsequent fiscal year. The business typically notifies employees of their ratings by January and sends them a letter requesting a wage increase in June.

Due to restrictions on industry-wide expansion, the majority of IT giants, including Infosys, have seen a decrease in staff in recent months.

Infosys, however, reduced its revenue growth target for FY24 to 1%-2.5% from earlier predictions of 1%-3.5%, citing a decrease in worldwide clients’ tech spending. This has forced IT firms to save money and continue to take a careful approach to staff expenses, including new recruiting.

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