After layoff controversy, Narayana Murthy’s Infosys planning to give lower bonus payouts to employees due to….

One of India’s IT giants Infosys, is again in the news after facing backlash for laying off hundreds of trainees. Recently, the company’s staff received a signal indicating that they will get a reduced performance bonus for the quarter ending March 2025, reflecting uncertainty in the IT sector. In a recent conference call, HR and delivery managers told the team that bonuses would be lower because of reduced profits. As per a report by ET, citing a senior staff member’s interview, the HR department started the discussion and is expected to hold similar conversations with other units of the company.

However, senior leadership provided reassurance that the situation is temporary, promising high bonuses for qualifying high-performing staff once business improves, the report said.

It is worth noting that Infosys had earlier issued salary revision letters in February, providing increases from 5 percent to 8 percent for most of its workforce.

In the fourth quarter, the Bengaluru-based company witnessed a decline of 11.7 percent in its net profit to Rs 7,033 crore as compared to earlier years. Also, the revenue forecast for 2025–26 shows very little growth. The tech giant’s bigger rival TCS has paused salary hikes, while Wipro has not commented on pay raises.

In the last month’s earnings briefing, Tata Group’s TCS signalled that salary increment decisions are subject to market conditions, highlighting worldwide economic instability and tariffs imposed by America.

Notably, the company dispersed complete variable compensation to 70 percent of its eligible employees. For the quarter ending December, Infosys distributed performance incentives to 80 eligible employees from delivery and sales divisions, the majority of its workforce, which exceeded 323,000 people.

During the bridge call, senior leadership of the company accepted and mentioned that several staff members were putting in additional hours, including weekends.

During internal talks, senior management informed experienced staff about the benefits they received prior to uncertainties. They also noted that some competitors haven’t given any pay hikes, according to a senior staff member.

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