Infosys offers lower bonuses ahead of salary hike in Q3.

Infosys Reduces Bonuses Ahead of Q3 Salary Hike

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: February 19, 2025

Summary: Infosys offered a performance bonus of 80% of the target to its eligible employees in Q3.

Infosys, the IT services company, will give out performance bonuses to qualified employees. The average bonus was 80% of the target for the quarter ending in December. This happened before the yearly pay raises, which should come by the end of March. People with inside knowledge shared this info with ET.

Reports suggest that the typical variable pay for employees in the delivery and sales departments, making up most of the software giant's 323,000+ workforce in Bengaluru, has dropped by up to 10 percentage points compared to the second quarter.

The company sent an email to the employees saying, “In line with our organizational goals on building high-performance work culture, we have continued to drive performance differentiation while closing bonus pay-outs as well.”

An employee told to the ET, “There has been a 5-10-percentage-point drop compared to last quarter, when some people even got 100% of the performance bonus. Looks like Infosys is conserving funds to fund pay hike expenses.”

While the other employee said, “This time it is, employees received an average of around 75% at the unit level rating, 100% for ‘outstanding’ rating, 85% for ‘commendable’ rating and 70% for ‘met expectations’ rating for JL5 & JL6.”

Team leaders are classified as JL5 (Job Level 5); consultants, software engineers, senior engineers, and system engineers are categorized as lower jobs. Except for vice presidents, JL6 and higher jobs include managers, senior managers, delivery managers, and senior delivery managers.

According to internal sources, the biggest IT services provider in India, Tata Consultancy Services (TCS), will announce its yearly pay increases for FY25 in March, with payouts starting in April. It is anticipated that the raises will vary by business vertical and employee grade, ranging from 4 to 8%.

Salary increases in March come after quarterly variable pay for the October–December quarter was released in February, with senior-level staff receiving payouts that were lowered by 20–40%. In the meantime, as business performance began to improve, junior and mid-level employees (grades C3 and lower) were paid in full.