Infosys Announces 85% Average Variable Pay as Q3 Performance Beats Expectations

In a significant move to bolster employee morale, IT major Infosys has announced an average performance bonus of 85% for the December-ended quarter (Q3 FY26).

This payout marks the highest variable pay the company has distributed in several quarters, reflecting a period of robust deal wins and steady revenue growth despite a volatile global tech environment.

Infosys Best Payout in Recent Years

The 85% average is a notable jump from the 75% average paid in the preceding July-September quarter and the 80% paid in the first quarter of the fiscal year.

Internal communications indicate that a large section of the company’s 3,23,000 employees will see a direct benefit, with individual payouts ranging between 75% and 100% based on performance ratings.

Some top performers reported receiving the full 100% of their target variable pay, a rarity in recent years.

Link to Strong Q3 Performance

The higher bonus follows Infosys’s strong financial showing in Q3, where the management raised its annual revenue guidance.

During a town hall meeting last month, Chief Human Resources Officer Shaji Mathew hinted at improved variable pay, citing “steady business momentum” and a “favorable tailwind.”

The company aims to reward staff for their role in securing large-scale digital transformation contracts and maintaining high project utilization rates.

Impact on Infosys Employee Sentiment

The timing of the announcement is particularly strategic.

This comes as technology stocks face pressure due to global macroeconomic concerns.

Meanwhile, the growing influence of AI on service automation is also impacting the sector.

For many employees, this bonus serves as a bridge to potential annual salary hikes, which management released in February last year.

The funds will be credited along with the February 2026 salary.

Sector-Wide Implications

Analysts suggest that Infosys’s generous payout may set a benchmark for its peers like TCS and Wipro.

The Indian IT sector is transitioning toward more performance-linked compensation models.

Consistent rewards for mid-to-junior level staff are becoming essential for talent retention.

Infosys is offering the best bonus in recent quarters. This move positions the company as an employer of choice in a competitive hiring market.

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