Bonus Cut: Bengaluru-Based IT Giant Infosys Likely Cut Bonus Payout TO 65% For Employees In Q4FY25

Infosys, a Bengaluru-headquartered second-largest tech company in India, has likely trimmed the bonus payout of its employees to 65% for the fourth quarter of FY25, as per a media report. The bonus payout was lower than the 80% incentive given in the third quarter and an average of 90% payout in the second quarter of the 2024-25 fiscal year.

An email that Infosys sent to its employees was seen by MoneyControl. In the internal email, Infosys told its employees that amidst the complex macroeconomic environment in Q4, the company remained client-focused and responsive to market needs.

GoodReturns.I cannot confirm the development. The media report revealed that the bonus payout was applicable to employees in Band 6 and below primarily junior to mid-level categories, who are eligible for quarterly variable payouts. The variable payment varies and takes into consideration performance rating which can range from 0% to as high as 83%.

During the fourth quarter, Infosys reported a decline of 11.7% in its consolidated net profit to Rs 7,033 crore compared to Q4FY24 performance. Also, revenue declined 2% to Rs 40,925 crore in Q4FY25 from Rs 41,764 crore in the preceding quarter but jumped by 7.9% compared to revenue of Rs 37,923 crore recorded in Q4FY24.

During the quarter under review, Infosys delivered $19,277 million in FY25 revenues, a growth of 4.2% in constant currency. Operating margin was at 21.1%, an expansion of 0.5% year on year. Free cash flow was the highest ever at $4,088 million, an increase of 41.8% year on year. TCV's large deal wins were $11.6 billion for the year, with 56% net new.

As of March 31, 2025, Infosys employees headcount stood at 323,578 people, compared to 323,379 employees by the end of the December 2025 quarter. Its IT services attrition rate shot up to 14.1% in Q4FY25 versus 13.7% in Q3FY25 and 12.6% in Q2FY25.

Recently, India's largest tech player, Tata Consultancy Services (TCS) was reported to have reduced its variable pay services to senior employees. However, TCS rejected the claim.

In a response to GoodReturns.In, TCS said, "We have paid out 100% QVA (Quarterly Variable Allowance) to over 70% of the company. For all other grades, the QVA depends on their unit's business performance. This is in line with our standard practice across quarters."

What Is Variables Pay?

Variable pay is the part of compensation an employer pays to an employee based on their performance or the results of their work. The amount of pay is variable and depends on the employee's and the organisation's performance. The organisation pays the variable compensation in addition to the base pay. Variable payment is subject to pre-determined conditions and is usually linked to productivity. It differs based on the job, the employee's experience and the company's policies, as per the jobs portal Indeed website.