Bengaluru: Infosys has reportedly informed some of its employees that performance bonuses for the fourth quarter of FY 2024–25 will be lower than usual, citing a dip in profits. The development was communicated by senior HR executives and managers to members of a major delivery unit via a conference call last week.
A staff member, speaking anonymously, mentioned that similar discussions may follow across other teams. While the bonus cut comes as a disappointment to many, Infosys’ top management reassured employees that the reduction is part of a “passing phase.” Executives added that the company would aim to offer better bonus recommendations to eligible performers once business growth picks up again.
The announcement follows Infosys’ Q4 earnings report, which showed a net profit of Rs. 7,033 crore—an 11.7 % year-on-year decline. The dip was mainly attributed to increased selling and marketing costs. Revenue for the quarter grew 7.9% to Rs. 40,925 crore but fell short of market expectations.
Infosys isn’t alone in initiating these cuts. Tata Consultancy Services (TCS) recently deferred annual salary hikes due to global business uncertainties but paid 100% of the Quarterly Variable Allowance (QVA) to over 70% of its workforce for the January–March quarter.
Meanwhile, Wipro has yet to announce any updates on salary revisions. Infosys had issued salary hike letters in February, granting most employees a 5–8% increase. In the previous quarter (Q3 FY25), it had paid an average of 80% in performance bonuses to eligible staff across delivery and sales units.
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