Infosys employees said there are indications that their performance bonus payout for the fourth quarter ending March 2025 would be muted, in a sign of continued uncertainties across the software services sector.
Infosys had last month reported a 11.7% year-on-year fall in its net profit for the fourth quarter to Rs 7,033 crore. The revenue guidance for 2025-26 was also in low single digit.
At a conference bridge call with the members of a large delivery unit last week, the company’s HR executives and delivery managers informed their team members that the bonus would be lower in view of the drop in profits.
The call was initiated by the HR team, which may have had similar chat with other units too, a senior employee said. He did not wish to be identified.
While at the call, the top executives assured the team members not to lose heart as this was a passing phase, and they would try to compensate with better bonus recommendations for eligible performing employees once the growth cycle returns.
Infosys did not respond to an email request for comment.
The Bengaluru-headquartered software major had, in February, rolled out salary revision letters with an increase of between 5% and 8% for most employees.
Its larger peer TCS has deferred salary revision while Wipro has not said anything about salary hikes so far.
At a post-earnings press conference last month, TCS had said it would decide about employee salary hikes depending on the business environment, citing concerns over global economic uncertainty and US tariffs. The company, however, paid full variable pay to 70% of its employees.
For the quarter that ended December, Infosys gave an average 80% performance bonus to eligible employees across delivery and sales units who make up the bulk of its over 323,000 workforce.
The team leaders, addressing members in the bridge call, said they were aware many of the employees were working extra hours, including on the weekends.
At internal interactions, senior executives told sections of experienced workers that the management had given them good hikes, bonus, promotion and onsite overseas opportunities when the business climate was good and profits were healthy. They also said some of the rivals have not even revised the pay, a senior employee said.
Infosys has enforced a 10-day-a-month work from office (WfO) with effect from March 10. It has introduced two layers of approvals for employees in case any of them has done additional days of work-from-home. Unapproved extra work-from-home days invite deduction in an employee’s leave balance.
Infosys had last month reported a 11.7% year-on-year fall in its net profit for the fourth quarter to Rs 7,033 crore. The revenue guidance for 2025-26 was also in low single digit.
At a conference bridge call with the members of a large delivery unit last week, the company’s HR executives and delivery managers informed their team members that the bonus would be lower in view of the drop in profits.
The call was initiated by the HR team, which may have had similar chat with other units too, a senior employee said. He did not wish to be identified.
While at the call, the top executives assured the team members not to lose heart as this was a passing phase, and they would try to compensate with better bonus recommendations for eligible performing employees once the growth cycle returns.
Infosys did not respond to an email request for comment.
The Bengaluru-headquartered software major had, in February, rolled out salary revision letters with an increase of between 5% and 8% for most employees.
Its larger peer TCS has deferred salary revision while Wipro has not said anything about salary hikes so far.
At a post-earnings press conference last month, TCS had said it would decide about employee salary hikes depending on the business environment, citing concerns over global economic uncertainty and US tariffs. The company, however, paid full variable pay to 70% of its employees.
For the quarter that ended December, Infosys gave an average 80% performance bonus to eligible employees across delivery and sales units who make up the bulk of its over 323,000 workforce.
The team leaders, addressing members in the bridge call, said they were aware many of the employees were working extra hours, including on the weekends.
At internal interactions, senior executives told sections of experienced workers that the management had given them good hikes, bonus, promotion and onsite overseas opportunities when the business climate was good and profits were healthy. They also said some of the rivals have not even revised the pay, a senior employee said.
Infosys has enforced a 10-day-a-month work from office (WfO) with effect from March 10. It has introduced two layers of approvals for employees in case any of them has done additional days of work-from-home. Unapproved extra work-from-home days invite deduction in an employee’s leave balance.
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