Narayan Murthy's Infosys employees likely to get lower salary payouts due to...

Infosys, the second-largest IT services firm in India, has announced that some employees will receive lower performance bonuses for the fourth quarter of the financial year 2024-25 due to declining profits, according to a report by The Economic Times.

Senior HR and Managers informed about bonus cuts

Senior HR executives and managers shared this information with members of a large delivery unit during a conference bridge call last week, as reported. A staff member, who preferred to remain anonymous, mentioned that similar discussions might be held with other teams as well.

According to the report, top executives have described the bonus reductions as a temporary measure, stating they will aim to provide improved bonus recommendations to deserving employees once the growth cycle recovers.

This announcement follows Infosys's recent report of a net profit of Rs 7,033 crore for Q4, reflecting an 11.7% decrease compared to the previous year, primarily due to increased selling and marketing expenses. However, the company's revenue saw a 7.9% increase, reaching Rs 40,925 crore.

Although the profit exceeded expectations, the revenue fell short of market forecasts. Furthermore, the company projected lower-than-anticipated revenue growth for FY26 during the results announcement.

Infosys isn't alone in anticipating a challenging year, as global economic instability, tariff disruptions, and cautious client spending are impacting the sector's outlook.

What Narayan Murthy's Infosys' competitors are doing?

Tata Consultancy Services, India's largest IT firm, announced last month that it would postpone annual wage increases for its 607,000 employees due to business uncertainties stemming from tariff issues. However, the company confirmed it had disbursed 100% of the Quarterly Variable Allowance (QVA) to over 70% of its workforce for the January-March quarter.

Meanwhile, according to the report, Wipro has yet to make any announcements regarding salary increases.

Infosys distributed salary revision letters to its employees in February, with most receiving a 5 to 8 percent increase. Additionally, for Q3 FY25, the company reportedly distributed an average performance bonus of 80 percent to eligible employees in its delivery and sales units.

Infosys work-from-home

Infosys has recently implemented a policy requiring employees to work from the office for 10 days per month, starting March 10th. The company has also introduced a two-tier approval process for employees who wish to work from home beyond the specified days, with unapproved extra work-from-home days resulting in deductions from employees' leave balances.