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Infosys Announces 90% Performance Bonus Payout For Q2 FY24-25

27 November 20243 mins read by Angel One
Infosys performance bonus of 90% is one of the highest payouts seen since the pandemic years and marks an increase from the 80% payout in Q1 FY25.
Infosys Announces 90% Performance Bonus Payout For Q2 FY24-25
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Infosys, India’s second-largest IT services company, has revealed a 90% average performance bonus payout for its eligible employees for the second quarter (Q2) of the 2024-25 fiscal year. This bonus, which will be credited along with the November salary, targets mid- and junior-level employees across the company’s delivery and sales units, who make up the bulk of Infosys’ workforce of over 3.15 lakh employees.

Bonus Distribution Based on Performance

Infosys performance bonus payout will be distributed based on individual performance and contribution during Q2. While the average payout is set at 90%, individual bonus percentages will vary. Employees who fall under the E0 to E6 bands (from freshers to mid-level employees) will receive the bonus, while senior-level employees (Band E7 and above) will not be part of this payout.

In an email to the eligible employees, Infosys confirmed that the bonus would be credited along with their November salary. The company refrained from disclosing unit-wise bonus payouts in individual communications, likely to prevent internal grievances.

Comparing Bonus Payouts: Q2 FY25 vs Previous Quarters

This 90% performance bonus is one of the highest payouts seen since the pandemic years and marks an increase from the 80% payout in Q1 FY25. The bonus payout also surpasses the 60% payout from the March quarter (Q4 FY24), reflecting a robust performance from July to September.

The decision to award a higher-than-usual performance bonus further highlights Infosys’ strong growth trajectory and its commitment to rewarding its employees for their contributions to the company’s success.

The performance bonus is primarily aimed at employees within the E0 to E6 employee bands. These include freshers, technical leaders, and those in mid-level positions. Employees in Band E7 and above are typically senior-level employees and are not included in the bonus distribution for Q2 FY25.

Strong Financial Performance in Q2 FY25

Infosys’ strong financial performance in Q2 FY25 is a key factor behind the impressive bonus payout. The company reported a 4.7% year-on-year increase in net profit, totaling Rs 6,506 crore. Revenue saw a 5.1% growth, reaching Rs 40,986 crore. This growth was largely driven by the ramp-up of mega-deals and a continued demand surge in the financial services segment.

Notably, Infosys revised its revenue guidance for FY25 to 3.75-4.5%, up from the earlier projection of 3-4%, reflecting the company’s confidence in sustaining growth momentum.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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