Infosys employees have been cautioned about lower performance bonus payouts for the fourth quarter of FY25, reflecting continued uncertainties in the software services sector.
The Bengaluru-based IT giant reported an 11.7% year-on-year decline in net profit, amounting to ₹7,033 crore, alongside weak revenue guidance for FY26.
During a recent conference bridge call, Infosys HR executives and delivery managers informed employees about reduced bonus payouts.
They attributed the decision to profit declines and ongoing market challenges.
Infosys has also enforced a 10-day-a-month work-from-office (WfO) policy, effective March 10, 2025.
Employees who exceed their approved work-from-home days now face leave deductions, adding to concerns over workplace flexibility.
Infosys Financial Performance and Bonus Adjustments
Infosys’ profit decline and weak revenue outlook have affected employee compensation. To manage costs, the company has decided to lower bonus payouts.
- In Q3 FY25, Infosys awarded an average 80% performance bonus to eligible employees across delivery and sales units.
- In contrast, Q4 bonuses are expected to be significantly lower, as the company adjusts financial priorities amid global economic uncertainty.
Despite the reduced bonuses, Infosys had previously rolled out salary revisions in February, offering 5%–8% hikes to most employees.
Employee Sentiment and Industry Comparisons
Infosys employees expressed concerns over the lower payouts, particularly as rival firms like TCS and Wipro have either deferred salary revisions or remained silent on pay hikes.
- TCS paid full variable pay to 70% of its employees but deferred salary hikes, citing global economic uncertainty.
- Wipro has yet to announce any salary revisions, leaving employees uncertain about compensation adjustments.
Infosys team leaders recognized that many employees were putting in extra hours, including weekends.
They assured staff that better bonus recommendations would be considered once the growth cycle improves.
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