Infosys recently announced its Q4 performance bonus payouts, and the response from employees has been lukewarm, with many expressing disappointment over the perceived modesty of the amounts. The average payout was reported to be around 65% of the targeted bonus for eligible employees. While some high performers received up to 70% or more, a significant portion of the workforce received only 50% of their expected bonus. This contrasts sharply with previous quarters, where bonus payouts averaged around 80% in Q3 FY25 and 90% in Q2 FY25.

Several factors contributed to this underwhelming response. Many employees felt the payout was significantly lower than in previous periods, including one senior employee stating that this was the lowest bonus he has seen in his 10-year tenure with Infosys. In the past, during more prosperous times, some had even received 100% or more of their eligible bonus amount. The company's internal communication lacked the usual motivational message from upper management, which further dampened spirits.

Infosys attributed the reduced bonus payouts to "macroeconomic factors" and a decline in Q4 profits. The company reported an 11.7% year-on-year drop in net profit to ₹7,033 crore, although revenues did increase by 7.9% YoY to ₹40,925 crore. Despite these challenges, Infosys reassured employees that high performers would be rewarded and that improved bonus proposals could be expected as market conditions improve.

The bonus payouts apply to employees at job levels 5 and 6, which include team leaders, software engineers, senior engineers, system engineers, and consultants. In February, Infosys had rolled out salary revisions with increases of 5-8% for most employees.

This reduction in bonus payouts reflects a broader trend in the IT services sector, which is currently facing challenges such as tariff uncertainties, growth concerns, and cautious client spending. Other companies are also reportedly cutting workers' performance-based bonus payouts. Despite the disappointing bonus announcement, Infosys emphasized the importance of employee commitment and motivation, promising potential for better bonuses in the future as the market recovers.