Infosys Announces 85% Performance Bonus for Mid and Junior Level Employees for Q2 2024-25

Infosys employees received encouraging news as the IT giant announced an 85% average performance bonus for the second quarter of FY2025, ending September.

The bonus, set to be credited alongside November salaries, primarily targets mid- and junior-level employees across various departments, including sales and delivery. According to a report by ET, the bonus reflects the employees’ performance during the September quarter.

In an official email to eligible employees, Infosys highlighted its robust Q2 performance, attributing it to “broad-based growth” and its “industry-leading expertise in Cloud and AI.”

The company’s consolidated net profit for Q2 FY25 grew by 4.7% year-on-year to Rs 6,506 crore, with revenue increasing by 5.1% to Rs 40,986 crore. This growth was driven by mega deal ramp-ups and improved demand in the financial segment.

The email further acknowledged employees’ dedication and commitment, stating, “Your unwavering dedication has been critical in building our capabilities and delivering exceptional value to our clients.”

Infosys’ focus on maintaining margins and leveraging technological innovations were highlighted as key factors contributing to its success.

Progressive Bonus Policy

The Q2 FY25 bonus marks an improvement over previous quarters. In Q4 FY24, employees received a 60% bonus, which rose to 80% in Q1 FY25. This consistent upward trend underscores Infosys’ dedication to rewarding its workforce.

Unlike its competitor TCS, which ties bonuses to office attendance, Infosys’ bonus policy remains independent of its hybrid work requirements. Employees are only mandated to work on-site for a minimum of 10 days a month.

A comparison with TCS reveals Infosys’ competitive edge. TCS reportedly offered a bonus range of 50-60%, contingent on attendance, whereas Infosys’ 85% bonus is free from such conditions.

This strategic move not only highlights Infosys’ robust financial health but also positions it as a leader in employee-centric policies.

Strong Financial Performance

Infosys’ Q2 financial report reflects significant growth. Consolidated net profit rose by 4.7% year-on-year, while revenue increased by 5.1%. The company’s FY25 revenue growth forecast has also been upgraded to 3.75%-4.5%.

These figures showcase Infosys’ ability to adapt and thrive in a competitive market, leveraging mega deals and strong client demand in the financial sector to drive its growth trajectory.

CEO Salil Parekh emphasized the company’s strategic initiatives, stating, “This growth marks a significant upward movement in Infosys’ trajectory.” Parekh’s focus on technological advancements in Cloud and AI has been pivotal in achieving these results.

Upcoming Salary Hikes

Infosys also announced plans to implement salary hikes by April 2025. This decision follows a history of delays and freezes, including a salary freeze in FY22 and postponed appraisals in FY24.

Selective hikes will begin in January 2025, extending to all employees by April. This move reaffirms Infosys’ commitment to enhancing employee satisfaction and retaining talent.

Acknowledgment of Employee Contributions

In a heartfelt message to employees, Infosys expressed gratitude for their efforts. The official email read, “Thank you for your invaluable contributions, and we look forward to a future full of endless possibilities with you.”

This acknowledgment reflects the company’s recognition of its employees’ role in achieving organizational goals.

Infosys’ decision to reward employees with an 85% bonus and its plans for salary hikes signify its commitment to fostering a high-performance work culture.

The company’s strong financial performance and employee-centric policies position it as a leader in the IT sector, setting a benchmark for others in the industry.