Infosys issues 65% bonus payout to employees for Q4FY25 amid complex macro environment

Infosys

India’s second-largest IT services firm, Infosys, has rolled out an average bonus payout of 65 percent for eligible employees for the fourth quarter of FY25 amidst a complex macroeconomic environment, sources told Moneycontrol.

While the Bengaluru-based company had rolled out an 80 percent bonus for the last quarter (Q3FY25), the average stood at 90 percent in the second quarter of FY25.

The performance bonus will be processed in the May 2025 payroll cycle.

“Amidst the complex macro-economic environment in Q4, we remained client-focused and responsive to market needs,” the company wrote in an internal mail seen by Moneycontrol.

For Q4FY25, Infosys reported a 12 percent year-on-year (YoY) fall in net profit to Rs 7,033 crore, below consensus estimates of Rs 7,278 crore.

Moreover, the IT services exporter guided for a low revenue growth in the range of 0-3 percent in constant currency for FY25-26. The fiscal also marked the top 5 IT companies posting single-digit growth for the second consecutive time amid macroeconomic headwinds.

The bonus applies to employees in Band 6 and below, primarily junior to mid-level staff, who receive quarterly variable payouts. The actual payout percentage varies by performance rating, ranging from 0 percent for those marked “Needs Improvement” to a high of 83 percent for “Outstanding” performers.

An email sent to Infosys seeking comment remained unanswered at the time of publication.

“It is less, quite less,” said an employee on the condition of anonymity.

The announcement comes at a time when IT firms have been wading through muted client spending and prolonged decision-making cycles in key markets.

On May 7, Moneycontrol reported that Infosys’ nearest rival and India's largest software exporter, Tata Consultancy Services (TCS), cut quarterly variable allowance (QVA) for senior employees for the January-March quarter.

This was the third quarter in a row of variable pay being slashed for senior employees. Most of them received about 20-30 percent of their QVA for the fourth quarter of FY25, and in the previous quarters too, almost 60-80 percent of the variable pay was deducted despite adhering to the company's work from norms.