Recently, the IT giant Infosys has rolled out 80 per cent variable pay for its employees. Despite facing a significant reduction in its projected growth, the company will be making the payout to all the eligible employees for the first quarter of the FY24.
In an email to employees, the management communicated that the company has accomplished a favourable performance in the first quarter, establishing a strong groundwork for subsequent growth. Furthermore, the email pointed out that the sum each individual will obtain will be determined by their performance and inputs during the quarter.
The email also conveyed that the performance bonus budget had been shared with the unit-delivery managers, who will be responsible for deciding how the bonus payouts within their specific delivery units will be distributed.
As a practice, the company provides its employees with a variable payout on a quarterly basis.
In the June quarter last year, Infosys issued an average payout of 70 per cent. Whereas, on the other hand, TCS, a major competitor, stated that 70 per cent of its employees will receive a full 100 per cent variable payout for the June quarter.
In the final quarter of FY23, Infosys allocated 60 per cent variable pay. Additionally, the company postponed salary increases for its workforce. These increments are generally implemented in July, and cover all the individuals below the managerial levels, as well as managerial staff.