Infosys, India’s second largest IT services major, has reportedly awarded its eligible employees an average performance bonus of 70% for the April-June quarter. While the average payout is similar to the last quarter, it is around 10 percentage points lower than what was awarded a year earlier.The payout comes as the technology industry deals with weaker discretionary spending, an uncertain macroeconomic environment and disruption from rapid developments in artificial intelligence.Infosys reported a 12% year-on-year rise in consolidated net profit to Rs 7,769 crore for the April-June quarter last month, even as it reduced its revenue growth guidance for the full year.Also Read | Indian IT sector job market is changing: What can get you hired & at a premium
Infosys bonus payout
The latest bonus payouts varied from 65% to 80%, depending on employees’ job levels and performance categories, according to an ET report.Employees in job levels (JL) 4 and 5 received marginally higher payouts than those in JL6. Among the top performers, employees at JL4 received 80%, while those at JL5 received 78%, the report said.Infosys had also paid an average 70% bonus in the preceding quarter, following strong business performance and gains in new deals.Employees across JL4, JL5 and JL6, who make up a substantial share of Infosys’ 328,062-employee workforce, were evaluated across performance categories such as “outstanding”, “commendable” and “met expectations”. A separate “non-applicable” category was also eligible for payouts.Employees are now awaiting details on the annual salary revisions. The company is understood to have indicated internally that the hikes may be implemented in two stages.Also Read | Fewer jobs, delayed onboarding: Why Indian IT sector is getting tougher for freshersEmployees at JL4 and JL5 are expected to receive the revisions over the next one to two months, while those at JL6 and above are likely to get them in January 2027.Infosys disclosed employee-level performance ratings in December after completing its appraisal cycle covering November 2024 to October 2025.It sent out salary revision letters in February, with most employees receiving increases of 5-8% based on their performance ratings, according to an earlier ET report.
Indian IT in a flux
India’s IT sector is going through a period of significant change in employment patterns – hiring, layoffs and salary increments. The rise of artificial intelligence has made certain roles less relevant, while creating new positions that require specialised skills.The shift is reflected in more selective and slower hiring, uneven salary increases and a greater focus on recruiting people with specialised expertise.Experts say the days of large-scale hiring and substantial pay hikes across the industry are coming to an end. IT companies are becoming more cautious about bringing in entry-level employees, even as they compete for experienced professionals with skills in specific areas.For IT workers, the route to higher pay is changing as a result. Rather than depending on regular job changes or broad salary increases across the industry, career progression is increasingly being driven by expertise in emerging technologies.
