Infosys, the IT behemoth, recently implemented variable pay of 80% for its employees. Despite a significant reduction in its projected growth, the company will pay out to all eligible employees in the first quarter of FY24.
In an email to employees, management stated that the company achieved a favourable performance in the first quarter, laying the groundwork for future growth. Furthermore, the email stated that the amount received by each individual will be determined by their performance and inputs during the quarter.
The email also stated that the performance bonus budget had been shared with the unit-delivery managers, who will be in charge of determining how the bonus payouts will be distributed within their specific delivery units.
In practise, the company pays its employees a variable wage on a quarterly basis.
Infosys paid out an average of 70% in the June quarter of last year. TCS, a major competitor, on the other hand, stated that 70% of its employees will receive a full 100% variable payout for the June quarter.
Infosys allocated 60% variable pay in the fourth quarter of FY23. Furthermore, the company delayed salary increases for its employees. These raises are typically implemented in July and apply to all employees below the managerial levels as well as managerial staff.