Infosys Announces 90% Performance Bonus - Who Is Eligible for It?

Infosys co-founder N R Narayana Murthy's hot take on 70 working hours per week for the nation's youth has sparked numerous debates nationwide and led to people questioning work culture at his own company. However, in a surprising turn, the tech giant has recently announced a generous bonus for its mid- and junior-level employees who constitute the bulk of the firm’s workforce.

India's second-largest IT services firm has announced a 90 per cent performance bonus to eligible employees across delivery and sales units for the second quarter (Q2) of FY25, according to The Economic Times. Reportedly, these employees contribute to the software major’s over 3.15 lakh workforce.

In an email shared with the eligible employees, as per ET, the company said that the bonus would be credited along with the November salary. Although the average performance bonus payout is 90 per cent, the percentage will differ based on individual performance.

“In Q2, we delivered a strong performance with broad growth, reinforcing our market leadership. This success is a testament to your unwavering dedication, our strategic focus on margin performance and our industry-leading expertise in Cloud and Generative AI," said the email reviewed by ET.

In Q2 of FY25 ending September, Infosys reported a 4.7 per cent year-on-year growth in consolidated net profit over Rs 6,500 crore, leading industry growth for the second consecutive quarter. This growth was driven by a 5.1 per cent increase in revenue, reaching Rs 40,986 crore, fueled by the ramping up of major deals and a continued improvement in demand, especially in the financial services sector.

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Notably, the company has revised its full-year guidance post-Q2 results to a range between 3.75 and 4.5 per cent as compared to earlier 3 and 4 per cent.

The latest bonus payout shows an improvement over 80 per cent announced in Q1FY25. An employee also confirmed ET that the bonus payout of Infosys is not linked to its return-to-office policy which requires select employees to work from the office for 10 days in a month.

Infosys is reportedly to resume salary hikes selectively from January 2025, extending to all employees by April 2025. Earlier, the company halted hikes in FY22 and delayed the appraisal cycle in FY24.