Infosys rolls out 65-80% bonus for Q1

While employees who received a “commendable” rating will be given close to 80% appraisal, those who were given a “met expectations” rating will be paid around 65%. In the fourth quarter of FY26, Infosys offered an average performance bonus of 70%, which was 15 percentage points lesser than the December payout of 85% — the highest in the recent past. The company did not respond to an email for comments.

For the April-June quarter, the company’s revenue rose 3.9% sequentially to Rs 48,211 crore from Rs 46,402 crore, while net profit slipped 8.6% quarter-on-quarter to Rs 7,769 crore from Rs 8,501 crore.

The company trimmed the upper end of its FY27 revenue growth guidance signalling continued macroeconomic uncertainty that is weighing down on client spending even as Infosys’ AI business lines expand.

The second-largest IT services company now expects revenue growth of between 1.5-3% for FY27 in constant currency terms compared with the previous guidance of between 1.5-3.5%. However, Infosys retained its operating margin guidance of 20-22%.

Earlier, Infosys had gradually pushed up its variable pay with employees receiving average performance bonuses of 80% and 75% in the first and second quarters of FY26, respectively.

Meanwhile, annual salary hikes will be given in two phases. The first tranche will be in October while senior employees will receive their bonuses in January. The company had rolled out annual salary hikes of between 6-8% for its workforce in India last year.

The IT sector’s prolonged slowdown has led to large caps moderating variable pay handed out to employees or redrawing their pay structures. In May, its peer Tata Consultancy Services (TCS) reportedly changed the payout structure of employee variable pay with a portion of the compensation being shifted to an annual cycle instead of the regular quarterly one. Additionally, the monthly performance payout was tied to employee attendance.