In a recent development that is likely to boost employee morale, Infosys has announced a significant increase in performance bonuses for the first quarter of fiscal year 2024-25. The IT giant has distributed an average bonus of 80%, up from 60% in the previous quarter. This increase comes in the wake of a strong financial performance by the company, which reported a 7.1% rise in net profit.
The bonus distribution for the quarter ending June 30 has been applied to employees at band six (E6) and below, who make up the majority of the workforce at the Bengaluru-based company. This move reflects the company’s efforts to reward its employees for their individual contributions and performance.
The decision to increase the bonus payout is seen as a response to the company’s strong performance and is expected to positively impact the morale of its employees. According to an anonymous Infosys employee, "This is the best we have seen in some time," highlighting the significance of the increase.
The bonus payouts varied based on individual performance and were determined by the heads of delivery units, who allocated the budget for each employee. This ensures that the bonuses reflect individual contributions to the company’s success.
In a communication reviewed by ET, Infosys emphasised its commitment to building a high-performance work culture and driving performance differentiation.
The company’s strong growth in the first quarter of fiscal 2025, including a 7.1% year-on-year increase in net profit and a 3.6% rise in revenue, has contributed to the higher bonus payouts.
Infosys has also raised its revenue guidance for FY25 to 3-4% in constant currency terms, citing a resurgence in business demand and a favourable market environment.
The company's robust financial performance and enhanced GenAI capabilities have strengthened client relationships and contributed to its diverse and dynamic portfolio.
The variable pay for the quarter ranged from 75% to 84.5% for employees in the E6 category, 77% to 86% for E5 employees, and 80% to 88% for E4 employees. This marks a significant increase from the previous quarter, where the variable pay was 54-60% for E6, 62-68% for E5, and 70-76% for E4.
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