Infosys has rolled out an 80 per cent average variable pay for the first quarter of the financial year 2023-24 (Q1 FY24). This comes after the IT major slashed its FY24 revenue guidance citing a challenging macroeconomic environment. The Bengaluru-based company’s bonus payout is on a quarterly basis, with 80 per cent being the typical payout ratio for eligible employees.
According to a Moneycontrol report, in an email to the staff, Infosys leadership conveyed that the company has exhibited commendable performance in Q1, thereby establishing a solid groundwork for forthcoming expansion endeavors.
“We remained committed to helping businesses accelerate their digital journeys and catering to emerging client requirements. By staying focused on our priorities, collaborating closely across teams, and remaining adaptable to changing circumstances, we are confident in setting ourselves up for a productive and optimistic quarter ahead,” the email said, as per the report.
However, the amount that individuals will receive is based on their performance and contribution for the quarter, the email furthers added.
In Q4FY23, Infosys had paid out 60 per cent average variable pay.
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It was earlier reported that the company has postponed salary hikes for its workforce. Typically, these increments are distributed to non-managerial employees and to managerial employees in July.
As per the report, Wipro has also postponed salary hikes by a quarter, and HCLTech has delayed them by a quarter for junior employees, while senior employees won’t receive them this whole year.
In line with this, Wipro’s variable pay for Q1, which is tied to the company’s performance, stands at 80 per cent, according to Chief Human Resources Officer Saurabh Govil, the report said.
Infosys saw a 1.4 per cent growth in revenue in dollar terms during Q1, falling short of expectations. Consequently, Infosys revised its revenue outlook for the fiscal year to a range of 1-3.5 per cent, down from the earlier projection of 4-7 per cent.