Infosys raises Q3FY26 bonus payout to 85% after steady quarterly improvement

Infosys

• Infosys rolls out average 85 percent performance bonus for Q3FY26
• Mid- to junior-level employees get 75 to 100 percent payouts
• Bonus to be credited with February salary for eligible staff

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IT major Infosys has rolled out performance bonus payouts averaging around 85 percent for the quarter ended December 31, 2025 (Q3FY26), marking the best variable pay outcome for eligible employees in at least the last three-and-a-half years, according to people familiar with the matter.

The bonus payout for mid- to junior-level employees ranges between 75 percent and 100 percent, with most employees clustering around the organisation-wide average of 85 percent.

Infosys’ variable pay has steadily improved over recent quarters, rising from about 65 percent to 80 percent, and now averaging around 85 percent in Q3FY26.

Employees are expected to receive their bonus letters over the next few days, with the payout scheduled to be credited along with the February salary, the people said.

One employee, speaking on the condition of anonymity, said this was the strongest bonus outcome they had seen in recent years.

“Yes, this time was better, I got good ratings,” another employee said.

This is also one of the rare instances since the Covid period when payouts have approached the upper end of the eligible range.

Infosys last paid out 100 percent variable pay during the pandemic, while subsequent quarters saw lower payouts amid macro uncertainty and demand slowdown.

The development assumes significance as global IT stocks have come under pressure in recent weeks, triggered by concerns around rapid advances in artificial intelligence(AI) and their potential to disrupt traditional IT services models.

Shares of global IT companies sold off sharply after heightened investor focus on AI leaders such as Anthropic, with fears that generative AI could compress pricing and reduce demand for legacy services work.

Against that backdrop, a higher-than-expected bonus payout signals resilience in execution and near-term performance, even as sentiment around the sector remains fragile.

The payout also comes days after Moneycontrol reported that Cognizant will roll out a 100 percent bonus payout for 2025 after entering what it calls the “Winner’s Circle”, an internal benchmark denoting top-tier industry performance.

Cognizant achieved this milestone two years ahead of its stated target.

Infosys did not respond to a request for comment by the time of publication.