Infosys Awards Average 70% Bonus for Q1 as Employees Seek Clarity on Salary Increases
Infosys, India’s second-largest IT services company, has announced an average performance bonus of 70% for eligible employees for the April-June quarter. This payout matches the previous quarter’s average but is approximately 10 percentage points lower than the bonus awarded during the same period last year. The decision comes amid challenges in the technology sector, including reduced discretionary spending and the impact of rapid advancements in artificial intelligence.
Bonus Payout Details
The bonus distribution varied between 65% and 80%, depending on employees’ job levels and performance ratings. Employees at job levels (JL) 4 and 5 received slightly higher bonuses compared to those at JL6. Top performers at JL4 received an 80% bonus, while JL5 employees received 78%. Infosys had previously awarded a similar 70% bonus in the last quarter, following strong business performance and new deal acquisitions.
Employees across JL4, JL5, and JL6, who represent a significant portion of Infosys’ workforce of 328,062, were assessed based on performance categories such as “outstanding,” “commendable,” and “met expectations.” A separate “non-applicable” category was also included for bonus eligibility. Employees are currently awaiting details on annual salary revisions, which are expected to be implemented in two stages. Those in JL4 and JL5 are likely to see revisions within the next one to two months, while JL6 and above may receive updates in January 2027.
Changes in the Indian IT Sector
The Indian IT sector is experiencing notable shifts in employment dynamics, including hiring practices, layoffs, and salary adjustments. The rise of artificial intelligence is rendering certain roles obsolete while simultaneously creating demand for specialized skills. This evolution is leading to more selective hiring processes and uneven salary increases, with a heightened focus on recruiting individuals with expertise in niche areas.
Industry experts indicate that the era of large-scale hiring and significant pay raises may be waning. IT companies are becoming more cautious about hiring entry-level employees, even as they compete for seasoned professionals with specific skill sets. Consequently, for IT workers, the pathway to higher salaries is evolving. Career advancement is increasingly reliant on expertise in emerging technologies rather than traditional job changes or broad salary increases across the sector.
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