Infosys Employees Face Lower Bonuses in March Quarter Due to Profit Decline
Employees at Infosys are preparing for reduced performance bonuses for the March 2025 quarter, as the company grapples with falling profits and weak growth prospects in the IT sector.
In a recent internal bridge call, HR representatives and delivery managers informed a large delivery unit about the upcoming cut in bonuses, citing a drop in profitability as the primary reason. A senior employee told ET that similar messages have likely been communicated across other teams.
Leadership Reassures Staff
Despite the disappointing update, Infosys’ leadership tried to reassure employees, calling the situation temporary. High-performing staff were promised improved bonus considerations once business conditions improve, sources said.
Earlier this year in February, the Bengaluru-headquartered firm had rolled out salary hikes of 5% to 8% for most employees. However, Infosys also reported an 11.7% year-on-year decline in net profit, falling to ₹7,033 crore in Q4. Additionally, its revenue growth outlook for FY26 remains tepid.
Industry-Wide Pressure
Infosys is not alone. Larger rival TCS has paused salary hikes, while Wipro has yet to announce any revisions. TCS, which recently provided 100% variable pay to 70% of its workforce, said further decisions would depend on market dynamics and concerns like global economic instability and U.S. tariff policy.
For the December 2024 quarter, Infosys had provided 80% average performance bonuses to eligible staff in sales and delivery roles, who make up a significant part of the company’s 323,000+ workforce.
Return-to-Office Push and Policy Changes
Since March 10, Infosys has implemented a policy requiring mandatory office presence for at least 10 days per month. Employees now need dual-level approvals for any extra remote work days. Unauthorised work-from-home days are deducted from the employee’s leave balance.
Leaders also reminded long-tenured employees of prior benefits during growth years—such as generous bonuses, promotions, and overseas assignments—and pointed out that some competitors haven’t provided any pay hikes in the current climate.
