In an email to the eligible employees, the company said it will credit the bonus along with the November salary. Individual payout percentages, however, have differed based on an employee’s performance and contribution for the quarter. ET has reviewed the email.
“In Q2, we delivered a strong performance with broad growth, reinforcing our market leadership. This success is a testament to your unwavering dedication, our strategic focus on margin performance and our industry-leading expertise in Cloud and Generative AI. Your commitment has been instrumental in building our capabilities and delivering exceptional value to our clients. Thank you for your invaluable contributions, we look forward to a future with endless possibilities with you,” the email read.
In Q2FY25 ending September, Infosys led industry growth for the second consecutive quarter reporting a 4.7% year-on-year rise in consolidated net profit at Rs 6,506 crore on a revenue increase of 5.1% at Rs 40,986 crore driven by ramp-up of mega-deals and continued demand improvement in the financial services segment.
Importantly, the company made an upward revision to its FY25 revenue guidance to 3.75-4.5%, higher than its earlier guidance of 3-4%.
The performance bonus average figure comprises payout to employees at band six (E6) and below.
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At Infosys, the classification of E0 – E2 employees range from freshers to technical leaders and E3 – E6 employee band are those with mid-level positions ranging between project managers and vice presidents. E7 and above are the senior-level employee base.In continuation with its new practice, this time too, the company has not disclosed unit-wise average performance pay-outs in individual mails to employees, a probable attempt to prevent any internal grouse within employees.
Infosys has not responded to an email seeking comment.
The payout announced is a tad higher than the June quarter’s 80% average payout, driven by a strong July to September growth quarter for the IT giant. It is also a sharp mark-up over the 60% average bonus rolled out in the March quarter, also the fourth and the last quarter of FY24.
Some of the employees ET spoke to anonymously agreed that the bonus is better than that of larger rival Tata Consultancy Services (TCS). “We seem to have got a bonus better than that of TCS,” an Infosys employee said, not willing to be identified.
Bellwether TCS is learnt to have given an average of 50-60% bonus payout and is rumoured to have rewarded those working from office with a higher payout, as per its latest mandate to work from office five days a week.
For Infosys, the bonus payout is not linked to its return-to-office policy which requires employees to work from office for 10 days in a month, one of the employees confirmed.
“In line with our organizational goals on building high-performance work culture, we have continued to drive performance differentiation while closing bonus payouts as well,” the email further said.
Infosys had frozen salary hikes in FY22 to conserve cash and started its annual appraisal cycle starting in October last year releasing a salary revision letter for the last salary cycle in December 2023.
Meanwhile, Infosys employees are also awaiting the September to October appraisal cycle revision for the fiscal year 2023-24.
During the latest second quarter earnings conference in October, Infosys CEO and managing director Salil Parekh had disclosed that a salary hike would be effective from January 2025 with selective employees to get the appraisal revision, followed by all others in April 2025.
