Bonus payout details
Infosys has paid an average performance bonus of 70% to eligible employees for the April-June quarter, according to people familiar with the matter. The figure is unchanged from the previous quarter but 10 percentage points lower than the same period a year ago, as reported by The Economic Times and The Times of India.
The latest payout ranged between 65% and 80% across employee levels and performance categories. Employees at job levels (JL) 4 and 5 received slightly higher payouts than those at JL6, with outstanding performers at JL4 receiving 80% and those at JL5 receiving 78%, according to both outlets.
The previous quarter's 70% payout followed strong business performance and deal wins, the reports noted.
Context: sector headwinds and company performance
The payout comes as the technology sector navigates slower discretionary spending, macroeconomic uncertainty, and disruption caused by rapid advances in artificial intelligence, as reported by The Economic Times and The Times of India.
Infosys reported a 12% year-on-year increase in consolidated net profit to Rs 7,769 crore for the April-June quarter, while lowering its annual revenue growth outlook, both outlets reported. The company did not respond to an email seeking details of the bonus payout, according to The Economic Times.
Employee assessment and workforce
Employees at JL4, JL5, and JL6, who constitute a significant portion of Infosys's 328,062-strong workforce, were assessed under performance categories including "outstanding", "commendable", and "met expectations", according to both outlets. A separate "non-applicable" category also received payouts, as reported by The Economic Times.
Salary hikes expected in two phases
Meanwhile, employees are awaiting clarity on annual salary hikes. The company is understood to have internally indicated that hikes could be rolled out in two phases, with employees at JL4 and JL5 expected to receive revisions in the next one to two months, and those at JL6 and above likely in January 2027, as reported by both outlets.
Infosys released employee-wise performance ratings in December after completing its appraisal cycle for November 2024 to October 2025. Salary revision letters were issued in February, with most employees receiving hikes of 5-8% depending on their performance ratings, according to The Times of India, citing an earlier report.
Industry context
The Times of India also noted that the Indian IT sector is undergoing changes in employment patterns, with hiring, layoffs, and increments in flux. AI is making some roles less relevant while creating new roles that require specialized skills. Experts quoted by The Times of India say large-scale hiring and substantial pay hikes are ending, with companies cautious about entry-level hires and competing for experienced professionals with specific skills. Career progression, the experts suggest, is increasingly driven by expertise in emerging technologies.