Infosys, the Bengaluru-based IT giant, is set to distribute the quarterly performance bonus for the July-September period to eligible employees this month.
The average payout is expected to be 80%, although individual payouts will vary based on performance and contribution for the quarter.
Staff classified under position level 6 (PL6-manager) and below, that is those below the manager category but barring entry level positions, are slated to obtain the variable pay.This information was shared in an official communication by the engineering team HR head at Infosys, and the internal communication has been seen by ET.This is to keep you all informed that the quarterly performance bonus payout for Q2FY2024 will happen in November 2023 payroll for all eligible employees, the email reprtedly said.Unit delivery managers will finalize the distribution of the payout for their respective units and inform eligible employees this week.
ET reached out to Infosys for comment but did not receive a response as of press time on Thursday.Infosys had frozen salary hikes in FY23 to conserve cash but started its annual appraisal cycle in October, as reported earlier.
The payout of the performance bonus comes at a time when Infosys and other top-tier IT companies have reported muted revenue growth in the September quarter.
Despite the challenging environment, Infosys managed to stay relevant and build a solid foundation for future market share expansions in Q2, according to an email announcing the payout.The 80% payout is consistent with the first quarter, but higher than previous quarters in FY22, where payouts ranged from 60% to 70%.
In the quarter ended March this year, Infosys paid out 60% as variable pay.The annual appraisal cycle at Infosys begins in October and ends in September of the following financial year.
The company usually discloses employee ratings by January and releases the letter of pay raise to employees in June.
However, the IT industry as a whole has witnessed a decline in headcount in recent months due to industry-wide growth constraints.Infosys reported a marginal rise of 3.2% year-on-year in net profit for the quarter ended September, amounting to Rs 6,212 crore, with a 7% revenue growth at Rs 38,994 crore.
Nevertheless, the company has revised its revenue growth guidance for FY24 to 1%-2.5% from the earlier estimates of 1%-3.5%.
This is due to a reduction in tech spending by global clients, which has prompted IT firms to conserve cash and adopt a cautious approach to employee expenses, including fresh hiring.The $245-billion IT industry has faced pressure due to global macroeconomic concerns and ongoing geopolitical issues, such as the Israel-Palestine conflict, resulting in a decrease in technology spending.