Narayana Murthy's Infosys revealed that eligible employees will receive an 85% performance bonus for the second quarter of FY 2025, which ended in September. The bonus, which is set to be disbursed alongside November salaries, will vary based on individual employee performance and contributions during the quarter.

Focus on Mid- and Junior-Level Employees

The performance bonus primarily targets mid- and junior-level employees, particularly those in delivery and sales roles. These employees make up a significant portion of Infosys' workforce, which currently stands at 3.15 lakh. The company has already communicated the bonus details via email to eligible employees.

In the email, Infosys praised its employees for their dedication, stating, "In Q2, we delivered a strong performance with broad growth, reinforcing our market leadership. This success is a testament to your unwavering dedication, our strategic focus on margin performance, and our industry-leading expertise in Cloud and Generative AI." The message further emphasised the critical role that employees played in driving the company's performance and delivering exceptional value to clients.

The bonus payout comes in the wake of a solid financial performance for Infosys. The company reported a 4.7% year-on-year increase in net profit, reaching ?6,506 crore, while revenues rose by 5.1% to ?40,986 crore. These results were driven by strong demand in financial services and several high-value contracts. Infosys also raised its revenue growth forecast for FY25 to a range of 3.75% to 4.5%.

Bonus Payouts Outshine Competitors

This bonus announcement marks an improvement over previous payouts. In Q1 FY25, Infosys employees received an 80% bonus, and in Q4 FY24, the payout was 60%. The 85% bonus is notably higher than the average bonus payouts at some competitors, such as Tata Consultancy Services (TCS), which reportedly provided bonuses ranging from 50% to 60%.

Unlike TCS, which is said to have tied its bonuses to office attendance, Infosys' bonus structure is independent of its hybrid work model. The company's hybrid policy requires employees to work at least 10 days a month on-site, but this does not influence bonus eligibility, according to an Infosys employee.

Selective Salary Hikes to Begin in January 2025

Looking ahead, Infosys CEO Salil Parekh announced that selective salary hikes will begin in January 2025, with a company-wide implementation expected by April 2025. This follows a freeze on salary hikes in FY22 and a delayed appraisal cycle in FY24, marking a return to normal salary adjustments for employees across the company.

Read Also: If Narayana Murthy had asked me to jump off a cliff ? I would have, says Infosys co-founder

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