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The Economic Times
The Economic Times
K R Balasubramanyam

Infosys Q1 bonus payout averages 70%, down 10 percentage points from a year ago

Infosys has paid an average performance bonus of 70% to eligible employees for the April-June quarter, unchanged from the previous quarter but 10 percentage points lower than the year-ago period, according to people familiar with the matter.

The latest payout ranged between 65% and 80% across employee levels and performance categories. Employees at job levels (JL) 4 and 5 received slightly higher payouts than those at JL6, with outstanding performers at JL4 and JL5 receiving 80% and 78%, respectively.

The payout comes as the technology sector navigates slower discretionary spending, macroeconomic uncertainty and the disruption caused by rapid advances in artificial intelligence. The previous quarter’s 70% payout followed strong business performance and deal wins.

Employees at JL4, JL5 and JL6, who constitute a significant portion of Infosys’ 328,062-strong workforce, were assessed under categories including “outstanding”, “commendable” and “met expectations”. A separate “non-applicable” category also received payouts.

Infosys reported a 12% year-on-year increase in consolidated net profit to Rs 7,769 crore for the April-June quarter last month, while lowering its annual revenue growth outlook.

The Bengaluru-headquartered company did not respond to an email seeking details of the bonus payout.

Meanwhile, employees are awaiting clarity on annual salary hikes. The company is understood to have internally indicated that the hikes could be rolled out in two phases, with employees at JL4 and JL5 likely to receive revisions in the next one to two months, followed by JL6 and above in January 2027.

Infosys released employee-wise performance ratings in December after completing its appraisal cycle for November 2024-October 2025. It issued salary revision letters in February, with most employees receiving hikes of 5-8% depending on their performance ratings, according to an earlier ET report.

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