IT major Infosys has rolled out 80 percent of the variable pay for the first quarter of the 2024 fiscal. The bonus payout is quarterly, and 80 percent is the average payout for employees who are eligible for it. This comes at a time when the company has sharply slashed its revenue growth guidance for the year amid a challenging and uncertain macroeconomic climate and demand environment.
In an email sent to employees, the management said that the company has delivered a good performance in Q1, “setting a robust foundation for future expansion.”
“We remained committed to helping businesses accelerate their digital journeys and catering to emerging client requirements. By staying focused on our priorities, collaborating closely across teams, and remaining adaptable to changing circumstances, we are confident in setting ourselves up for a productive and optimistic quarter ahead,” the email sent to employees read.
However, the amount that individuals will receive is based on their performance and contribution for the quarter, the email added.
“Performance Bonus budget was shared with Unit Delivery Managers to finalize bonus payout distribution for their respective DUs,” the email said.
Delayed salary hikes
In Q4FY23, Infosys had paid out 60 percent as variable pay.
As Moneycontrol had previously reported, the company has deferred salary hikes to its employees, and is yet to pay them out. Salary hikes would typically be rolled out for those below the management level, and for those in management, in July. During the company’s Q1 results, Chief Financial Officer Nilanjan Roy said that hikes were under “active consideration” but did not provide any details on the same. Wipro deferred salary hikes to its employees by a quarter, and HCLTech deferred it by a quarter for junior employees while skipped it this year for senior employees.
Wipro’s variable pay for Q1 for employees, whose payout is linked to the company's performance, is also 80 percent, as per the company’s Chief Human Resources Officer Saurabh Govil.
Infosys in Q1 saw revenue growth 1.4 percent in dollar terms, missing expectations. Infosys slashed its revenue guidance for the fiscal to 1-3.5 percent from 4-7 percent.
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