Infosys Boosts Morale with 75% Average Bonus Payout

Infosys has distributed performance bonus letters to its eligible workforce for the July-September 2025 quarter (Q2 FY26), announcing an average payout of 75% of the targeted variable component.

This significant payout reflects the company’s strong financial performance during the quarter and reinforces its commitment to a high-performance work culture, even as the global IT sector navigates macroeconomic uncertainties.

The bonuses, which will be credited to employees along with their November salaries, cover a substantial portion of the company’s 323,000-strong global workforce.

Employees at job levels 4, 5, and 6 (PL4, PL5, PL6)—which encompass roles ranging from software engineers and technology analysts to team leaders and senior managers—are the primary recipients of the quarterly payout.

Infosys Strong Q2 Earnings Fuel Payout

The decision to award a robust 75% average bonus comes on the heels of the company’s impressive second-quarter financial results.

Last month, the Bengaluru-headquartered firm reported a 13% year-on-year growth in consolidated net profit, which totaled ₹7,364 crore for the September quarter.

Furthermore, the company showcased its confidence in its growth momentum by revising the lower end of its full-year revenue guidance (FY26) upwards to 2-3%, an improvement from the earlier 1-3% projection.

This upward revision, driven by broad-based growth and the ramp-up of large digital and cloud transformation deals, indicates increased business visibility and stable client spending, which directly translates into higher variable pay for employees.

Performance Differentiation and Payout Breakdown

While the overall average payout stands at 75%, the final percentage varied based on individual employee performance and their assigned job levels, ensuring a clear link between contribution and reward.

This differentiation mechanism is a cornerstone of Infosys’s strategy to foster a meritocratic environment.

For instance, employees at the mid-level (PL4) received variable pay linked to their performance ratings:

Those rated as ‘Outstanding’ received the highest average payout, reaching 83%.
Employees rated as ‘Commendable’ were granted an average of 78.5%.
Staff who ‘Met Expectations’ received the company average of 75%.

The bonus percentage tapered slightly for employees at lower job levels, with the overall range for eligible staff falling between 70.5% and 83%.

It is worth noting that the average payout of 75% for this quarter was slightly lower than the 80% average distributed for the preceding June quarter, reflecting the continuous quarterly recalibration based on specific business unit and overall company performance targets.

Rewarding Talent Amidst Industry Caution

Infosys’s consistent and substantial variable pay stands in contrast to the more cautious approach taken by some industry rivals, many of whom have either delayed annual salary hikes or reduced variable pay to manage costs.

By continuing to reward staff generously, Infosys aims to strengthen employee retention and maintain its reputation as an employer of choice in a competitive market for digital and AI-skilled talent.

In an internal communication to employees, the management conveyed their gratitude, stating, “In line with our organisational goals for building a high-performance work culture, we have continued to drive performance differentiation while closing bonus payouts as well.”

This statement underscores the strategic importance of the bonus not just as a financial reward, but as a tool for driving internal excellence and maintaining a highly engaged workforce focused on delivering exceptional value to clients globally.

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