Infosys bonus news: IT services firm Infosys has announced disbursal of performance bonuses averaging 80% of the target to qualifying staff for the quarter ending December, prior to the scheduled annual salary revisions due by March-end, sources informed ET.
The variable pay distribution has seen a reduction of up to 10 percentage points compared to the previous quarter for staff in delivery and sales divisions, who constitute the majority of the Bengaluru-based company’s 323,000-strong workforce.
“In line with our organisational goals on building high performance work culture, we have continued to drive performance differentiation while closing bonus pay-outs as well,” stated the company’s communication to certain staff members.
A staff member, speaking anonymously to the financial daily said: “There has been a 5-10-percentage-point drop compared to last quarter, when some people even got 100% of the performance bonus. Looks like Infosys is conserving funds to fund pay hike expenses.”
Staff received approximately 85% of their variable pay during the July to September period. “This time it is, employees received an average of around 75% at unit level rating, 100% for ‘outstanding’ rating, 85% for ‘commendable’ rating and 70% for ‘met expectations’ rating for JL5 & JL6,” revealed another employee.
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The JL5 (Job Level 5) designation applies to team leaders, whilst lower positions encompass software engineers, senior engineers, system engineers and consultants. JL6 and higher positions include managers, senior managers, delivery managers and senior delivery managers, excluding vice presidents.
Tata Consultancy Services disbursed quarterly variable pay in February for October-December period, with approximately 70% staff receiving full variable pay. Senior executives received reduced pay-outs between 20% to 40%.
The variable pay percentages vary according to individual performance and quarterly contributions.
Despite Infosys increasing its revenue forecast for the current fiscal to 4.5%-5.0%, reduced pay-outs were anticipated.
“Q3 was marked by strong, broad-based growth, driven by our strategic digital offerings, key initiatives, market positioning and structured approach to margin expansion. This success is a reflection of your dedication, and we deeply appreciate your efforts,” stated the company email to staff.
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Infosys reported strong October-December quarter results, with net profit rising 11.4% to $800 million and revenue growing 7.6% to $4.9 billion.
Chief human resource officer Shaji Mathew informed employees during a February 5 town hall that “Those falling at and below job level five (JL5) will receive hikes with effect from January 1 and those at job level six (JL6) and above will get the revised pay from April 1.”
