Infosys Awards 70% Average Performance Bonus as Employees Await Salary Revision Clarity
BENGALURU: Infosys, India’s second-largest IT services provider, has disbursed an average performance bonus of 70% to eligible employees for the April-June quarter. While this payout remains consistent with the previous quarter, it marks a 10-percentage-point decline compared to the same period last year, reflecting the cautious stance adopted by the broader technology sector.
The distribution of the Infosys bonus payouts varied between 65% and 80%, contingent upon individual job levels and performance ratings. According to internal reports, employees at Job Levels (JL) 4 and 5 saw slightly higher payouts than those at the JL6 level. Top-performing staff at JL4 received as much as 80%, while their counterparts at JL5 were awarded 78%.
These performance-based incentives were calculated across categories including “outstanding,” “commendable,” and “met expectations,” covering a significant portion of the company’s 328,000-strong workforce.
Navigating Economic Headwinds
The bonus announcement arrives during a challenging period for the Indian IT industry. Companies are currently grappling with reduced discretionary spending by global clients, a volatile macroeconomic environment, and the structural shifts brought on by the rapid integration of artificial intelligence.
Despite these hurdles, Infosys posted a solid financial performance last month, reporting a 12% year-on-year rise in consolidated net profit, reaching Rs 7,769 crore. However, the company has adopted a conservative outlook, opting to lower its revenue growth guidance for the full fiscal year.
Uncertainty Over Salary Revisions
As the bonus cycle closes, the workforce is shifting its focus toward annual salary revisions. Internal communications have suggested that the company plans to implement upcoming hikes in a phased manner.
Reports indicate that employees at JL4 and JL5 can expect their revisions within the next one to two months. Conversely, staff at JL6 and above may face a longer wait, with anticipated implementation slated for January 2027. This follows a previous cycle in February, where most employees received increments ranging between 5% and 8% based on performance appraisals.
The Changing Landscape of Indian IT
The current situation at Infosys serves as a microcosm of the larger shifts occurring within the Indian IT sector. Industry experts observe that the era of blanket, large-scale hiring and broad-based salary hikes is increasingly being replaced by a more surgical approach.
Driven by the rise of generative AI and automation, firms are prioritizing the recruitment of professionals with niche, specialized skills. This shift has led to slower hiring cycles, more selective onboarding, and a greater emphasis on professional expertise over tenure. For the modern IT worker, career progression and premium compensation are now inextricably linked to mastering emerging technologies, as traditional models of industry-wide salary growth continue to evolve under pressure.
