Infosys Cuts Q4 Bonus Payouts Following Largest Variable Pay Increase in Over Three Years
Infosys Reduces Performance Bonus Payouts for March Quarter
IT major Infosys has reduced performance bonus payouts for the March quarter, following a record variable pay disbursement in the preceding quarter. According to internal communication reviewed by Moneycontrol, the average bonus payout for the March quarter stood at around 70 percent, lower than the 85 percent paid out in the December quarter (Q3FY26). This quarter's payout marks the company's strongest variable pay since the Covid period.
The internal payout matrix reveals that employees in personal level (PL) 4 received payouts ranging between 67 percent and 82 percent across business units, while those in PL5 received between 65 percent and 78 percent. Employees in PL6 saw payouts ranging from 63 percent to 77 percent. The payout percentages also varied across delivery and business segments, as shown in the internal note.
| Payout Range | PL 4 | PL 5 | PL 6 |
|---|---|---|---|
| Minimum | 67% | 65% | 63% |
| Maximum | 82% | 78% | 77% |
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The moderation comes just a quarter after Infosys paid out variable bonuses ranging between 75 percent and 100 percent for eligible mid and junior-level employees. At the time, employees had described the payout as one of the strongest in recent years, with some receiving full variable pay, a rarity since the pandemic-led boom period.
Infosys steadily increased its variable payouts over recent quarters, from 65 percent to 80 percent before peaking at 85 percent in Q3. The softer Q4 payout comes amid continued uncertainty in the global technology sector, where investor sentiment has remained fragile due to concerns around rapid advances in artificial intelligence and their potential impact on traditional IT services business models.
Global IT stocks have witnessed volatility in recent months as investors reassessed the long-term demand outlook for legacy services work in the age of generative AI. Infosys did not respond to a request for comment by the time of publication.
Investor Takeaway
Infosys has reduced performance bonus payouts for Q4, following a large variable pay increase in Q3.
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