Infosys Gives 65% Bonus To Eligible Employees: “Lowest In 10 Years”, Claims Senior Staff

Infosys Gives 65% Bonus To Eligible Employees: “Lowest In 10 Years”, Claims Senior Staff Tezzbuzz | 17/05/2025 04:24:17

Infosys, India’s second-largest IT services firm, has announced an average performance bonus payout of 65 percent for Q4 FY25. This applies to employees in Band 6 and below, including software engineers, consultants, and mid-level managers. These staff members, who form the bulk of Infosys’ workforce, will receive their bonus in the May 2025 payroll.

Declining Trend Compared to Previous Quarters
The Q4 payout is significantly lower than previous quarters—Infosys had disbursed an average of 80 percent in Q3 FY25 and 90 percent in Q2. This marks a 15 percent cut from the sequential quarter and reflects the company’s ongoing efforts to navigate a challenging macroeconomic environment. Some employees received as little as 50 percent of their target bonus, while only top performers received over 70 percent.

Financial Pressures Behind the Cut
The reduced bonus aligns with Infosys’ financial performance. The company reported a 12 percent year-on-year decline in Q4 net profit to ₹7,033 crore, missing market expectations. Additionally, revenue growth guidance for FY25-26 was pegged at a modest 0–3 percent, indicating cautious optimism in a turbulent market.

Muted Communication & Employee Sentiment
Unlike previous quarters, the bonus announcement came without the usual motivational messages from top management. Many employees expressed disappointment, especially those who had seen 100 percent or more payouts during better times. A senior Infosys employee noted this as the lowest bonus in his 10-year tenure at the company.

Industry-Wide Challenges
Infosys is not alone in facing headwinds. Its rival TCS recently slashed variable allowances for senior employees, while Wipro has yet to announce salary hikes. TCS deferred raises and paid only 20–30 percent of QVA for many senior employees in Q4. These actions reflect broader issues in the IT services sector—sluggish client spending, delayed decisions, and a weak global economy.

Looking Ahead
Infosys leadership has reportedly urged employees to stay focused and motivated, assuring that better bonus recommendations could follow once market conditions improve. For now, the reduced payout is a stark reminder of the uncertainty surrounding the IT industry, despite its critical role in global digital transformation.