Infosys, a leading IT company, is set to provide its employees with an average variable payout of 80% for the June 2023 quarter, marking a significant increase from the 60% average variable pay in the previous April quarter and the 70% in the June 2022 quarter. The higher variable payout reflects the company’s strong performance and commitment to its workforce.
According to a report by Moneycontrol, the variable payout is based on individual performance and contributions during the quarter. Some top performers might even receive up to 95% of their variable pay, reinforcing the company’s practice of recognizing and rewarding exceptional efforts.
In an email sent to employees, Infosys management highlighted the company’s successful performance in Q1 and its dedication to supporting businesses in their digital transformations. The company’s achievements during this period have laid a robust foundation for future expansion.
The allocation of the performance bonus budget for variable pay distribution was entrusted to Unit Delivery Managers, who were responsible for determining the distribution of bonus payouts within their respective business units.
Despite the positive variable payout announcement, Infosys has not yet confirmed salary hikes for the financial year 2023-24. The company’s Chief Financial Officer, Nilanjan Roy, stated that the decision is currently under consideration and will be addressed in due course.
Comparatively, Tata Consultancy Services (TCS), another prominent IT services provider, announced that 70% of its employees would receive a 100% variable payout for the June 2023 quarter.
Infosys reported a 10.9% increase in net profit, reaching Rs 5,945 crore in the June 2023 quarter. The company’s revenue also experienced growth, rising by 10% to Rs 37,933 crore compared to Rs 34,470 crore from the previous year.
However, the company has revised its revenue growth guidance downward for the financial year 2023-24. The guidance now stands at 1-3.5% in constant currency terms, down from the earlier projection of 4-7%, due to uncertainties in the global economic environment. Infosys’ operating margin guidance for FY24 remains at 20-22%.
Furthermore, the company’s efforts to manage attrition seem to be yielding positive results. IT services attrition decreased to 20.9% during the March 2023 quarter, down from 24.3% in the previous December 2022 quarter. This improvement suggests a positive trend in employee retention and engagement strategies.
