India’s second-largest information technology services firm Infosys has issued an 90 percent bonus to eligible employees for the second quarter ending September 30 of the current fiscal (FY25), sources told Moneycontrol. The letters informing employees about the variable payouts were sent on November 25 and 26.
The bonus will be distributed to Band 6 and below employees, comprising junior to mid-level staff who receive quarterly bonuses. The bonus percentage will vary based on individual performance.
An email seeking comment from the company went unanswered by the time of publication.
This development came days after Moneycontrol reported that the sector bellwether Tata Consultancy Services (TCS) cut variable pay at senior levels for the September quarter due to tepid demand.
Nonetheless, Infosys has outperformed its larger rival in this regard. While some TCS employees received only 20%-40% of their quarterly variable payout, others received none, despite complying with the company's mandatory work-from-office policy.
TCS slashed variable pay for employees in July-September despite adhering to the company's work-from-office norms as business continues to see demand uncertainty, people privy to the development told Moneycontrol.
On the other hand, Infosys has not linked variable payout with work-from-office mandate.
Also read: Infosys asks some staff back in office 10 days a month, bucking global trend
The email to employees highlighted the company's strong performance in Q2, attributing its success to the dedication of its workforce and its strategic focus on cloud and generative artificial intelligence (Gen AI) services.
Infosys reported a 2.2 percent sequential increase in net profit for Q2FY25, reaching Rs 6,506 crore. The company's revenue for the period showed a robust 4.2 percent sequential growth, totaling Rs 40,986 crore.
The company further raised its full-year revenue growth guidance to 3.75-4.5%, building on the unexpected increase to 3-4% announced in July.
Meanwhile, several major Indian IT companies, including Infosys, had shifted wage hikes to the third quarter of FY25 to manage costs and sustain profitability amidst a sluggish demand environment.
Also read: Infosys, HCLTech, & LTIMindtree shift wage hikes to Q3
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