Infosys rewards 80% bonus to employees after strong Q1 performance

Infosys has announced an average performance bonus of 80% for its eligible employees for the first quarter of the financial year 2025-26 (Q1FY26). The payout will be processed with August salaries. This marks a notable increase from the 65% bonus distributed in the previous quarter, which had disappointed many employees amidst a broader industry slowdown. The company has linked the improved payout to its strong financial results in the April-to-June period.

This bonus is not uniform across the board. The payout percentage varies based on individual performance ratings and job levels, specifically for employees in the PL4, PL5, and PL6 bands. Infosys maintains that its performance-based pay structure helps foster a high-performance culture by rewarding top-tier talent.

The higher bonus follows a strong first quarter for Infosys. The company reported a 9% year-on-year increase in consolidated net profit to Rs. 6,921 crore and secured USD 3.8 billion in large deal wins. This gave the company confidence to raise its revenue guidance for the full financial year. Notably, Infosys's performance in Q1FY26 stood out among its peers, with the company being the only major IT firm to report revenue growth in constant currency.

The decision to increase the bonus payout reflects a positive outlook from the company’s management regarding its business pipeline and future growth prospects. This is a welcome development for employees, especially after a period of macroeconomic uncertainty that impacted variable pay across the IT sector, causing some firms to reduce bonuses or defer hikes.