Infosys has lowered performance bonus payouts for the March quarter after reporting one of its strongest variable pay cycles in recent years during the previous quarter. The move signals a moderation in payouts after a period of gradual increases and comes at a time when the technology industry continues to navigate market uncertainty.
The average performance bonus payout for the fourth quarter of FY26 stood at nearly 70 per cent, according to reports. This marks a decline from the approximately 85 per cent average payout recorded during the December quarter, which had been viewed by employees as one of the strongest payout cycles since the pandemic era.
The reduction has impacted employees across internal performance bands and business units. Based on the company’s internal structure, staff members in different personal level (PL) categories received varying payouts depending on role and business segment performance. Employees in PL4 reportedly received payouts ranging between 67 per cent and 82 per cent, while PL5 employees saw payouts between 65 per cent and 78 per cent. For PL6 employees, payouts ranged from 63 per cent to 77 per cent.
These PL categories are part of Infosys’ internal evaluation system and are used to assess employee performance and determine variable compensation outcomes during appraisal periods.
The latest payout follows a strong previous quarter in which eligible junior and mid-level employees had received significantly higher bonuses. At the time, some employees reportedly received full variable payouts, a trend that had become uncommon after the post-pandemic slowdown in the technology sector.
Infosys had steadily improved bonus distributions over recent quarters, with average payouts gradually rising from around 65 to 80 per cent, before reaching approximately 85 per cent in Q3.
The moderation comes amid broader uncertainty in the global technology sector. Rapid developments in artificial intelligence (AI) and evolving business models have led investors and companies to reassess demand patterns and long-term growth prospects for traditional IT services.
