Another bad news for Narayana Murthy’s Infosys employees, lower bonus payments due to…
Recently the IT sector faced layoffs and other problems like renewing the contract. Tech giants from Infosys to Google reported several challenges. This was the impact of increase in usage of artificial intelligence which led to reduction in IT services needs. Also after Donald Trump’s tenure was started these sectors also faced problems related to new traffic announced.
Infosys was among such firms who also faced these issues. Now employees have been informed about lower performance bonuses for the quarter ending March 2025. It’s mainly due to the impact of challenges faced by the IT services sector. During a recent call with a large delivery unit, HR personnel and delivery managers gave updates on reduced bonus payouts due to a decline in company profits, report Economic Times.
Senior leadership also assured employees that the situation is temporary and they may reconsider bonus recommendations once business conditions improve, according to an ET report.
Earlier this year, Infosys implemented salary hikes of 5-8% for most employees. The company’s net profit fell 11.7% to Rs 7,033 crore in the fourth quarter compared to the previous year. Revenue growth projections for 2025-26 are also not that great.
Infosys Vs TCS VS Wipro
TCS: Infosys’ competitor TCS also held salary hikes over economic instability and due to impacts of U.S. tariffs. However, it gave full variable compensation to 70% of its staff in the December quarter.
Wipro: Wipro has not yet announced any decisions regarding pay hikes so employees are unaware about future compensation adjustments.
Infosys provided an average of 80% performance incentives to eligible employees in delivery and sales roles for the quarter ending December 2024. During the bridge call, management recognized that employees extended working hours and worked on weekends. They also remembered prior benefits given to staff during better business periods like higher increments, bonuses, promotions.
Since March 10, Infosys made office attendance mandatory for at least 10 days per month. Additional work-from-home days also require dual-level approvals. Any unauthorized remote working days are deducted from employees’ leave balances.
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