Infosys, India’s second-largest IT services company, has initiated performance bonus pay-outs for eligible employees for the first quarter of fiscal year 2024-25, which ended on June 30. The average bonus stands at 80%, aimed at boosting the morale of a significant portion of the company’s technology workforce.
The average bonus percentage applies to employees at band six (E6) and below, who form the bulk of the workforce at the Bengaluru-based company. This quarter’s bonus represents a notable increase compared to the previous quarter, which ended on March 31, when Infosys distributed an average of 60% of the targeted bonus. An Infosys employee, who preferred to remain anonymous, described the payout as “the best we have seen in some time.”
Bonus payouts varied based on individual performance, with delivery unit heads determining the percentages within the allocated budget. An internal email reviewed by ET stated, “In line with our organizational goals on building a high-performance work culture, we have continued to drive performance differential while closing bonus pay-outs as well.”
This decision follows Infosys’ industry-leading growth in the first quarter of fiscal 2025, where the company reported a 7.1% year-on-year increase in net profit and a 3.6% rise in revenue, outperforming top-tier competitors. As a result, Infosys has raised its revenue guidance for FY25 to 3-4% in constant currency terms, citing increased business demand and a favorable market environment over the past two quarters.
In an email to its employees, Infosys acknowledged the strong growth achieved in Q1 (April-June), attributing it to the company’s unique service offerings and the dedication of its workforce. The email highlighted how employee commitment has strengthened the company’s diverse portfolio, while enhanced GenAI capabilities have deepened client relationships.
For the quarter, variable pay ranged from 75% to 84.5% for E6 employees, 77% to 86% for E5, and 80% to 88% for E4. These figures mark an increase compared to the previous quarter, where variable pay ranged from 54-60% for E6, 62-68% for E5, and 70-76% for E4.
At Infosys, employees in the E0–E2 classification range from freshers to technical leaders, while those in the E3–E6 band hold mid-level positions such as project managers and vice presidents. Senior-level employees are classified as E7 and above.
