According to reports from The Times of India and Business Standard, Infosys, India's second largest IT services major, has awarded eligible employees an average performance bonus of 70% for the April-June quarter. The payout comes as the technology industry faces weaker discretionary spending, an uncertain macroeconomic environment and disruption from rapid developments in artificial intelligence. While the average payout remained unchanged from the fourth quarter, it represents a 10 percentage points decrease compared to what was awarded a year earlier. The bonus payments come after Infosys reported results that missed analyst expectations and also cut the upper end of its annual guidance. The Bengaluru-headquartered company did not respond to an email seeking details of the bonus payout.
As reported by The Times of India, the latest bonus payouts varied significantly across different job levels and performance categories. Employees in job levels 4 and 5 received marginally higher payouts than those in JL6, with top performers at JL4 receiving 80% and those at JL5 receiving 78%. A majority of the company's workforce, from junior to mid-senior levels, was eligible for this bonus payout, with no immediate confirmation on the timing and corpus for senior management. Employees across JL4, JL5 and JL6, who make up a substantial share of Infosys' 328,062-employee workforce, were evaluated across performance categories such as 'outstanding', 'commendable' and 'met expectations'. A separate 'non-applicable' category was also eligible for payouts.
According to reports from The Times of India and Business Standard, Infosys reported a 12% year-on-year rise in consolidated net profit to ₹7,769 crore for the April-June quarter last month, even as it reduced its revenue growth guidance for the full year. The company had also paid an average 70% bonus in the preceding quarter, following strong business performance and gains in new deals. The current financial year is proving more challenging than the last, with IT companies continuing to navigate macroeconomic volatility and a low-revenue environment. Infosys disclosed employee-level performance ratings in December after completing its appraisal cycle covering November 2024 to October 2025.
As reported by The Times of India, employees are now awaiting details on the annual salary revisions, with the company understood to have indicated internally that the hikes may be implemented in two stages. Employees at JL4 and JL5 are expected to receive revisions over the next one to two months, while those at JL6 and above are likely to get them in January 2027. Infosys has confirmed that it will provide salary hikes to its employees in October and January, with most employees receiving increases of 5-8% based on their performance ratings. The company sent out salary revision letters in February, with the upcoming revisions scheduled for October and January 2027.
According to reports from The Times of India, India's IT sector is experiencing significant changes in employment patterns, with the rise of artificial intelligence making certain roles less relevant while creating new positions requiring specialized skills. The shift is reflected in more selective and slower hiring, uneven salary increases and greater focus on recruiting people with specialized expertise. Experts indicate that the days of large-scale hiring and substantial pay hikes across the industry are coming to an end, with IT companies becoming more cautious about entry-level employees while competing for experienced professionals with specialized skills.
