Infosys cuts Q4 variable pay to 60%

Indian IT services company Infosys will be rolling out 60 per cent variable pay on average to its employees in Q4 FY 2022-23, Business Today has learned from sources.

As per the email sent to employees by the company, the exact payout for each employee is subject to their respective department’s guidelines and is expected to fluctuate based on pay grades and departments.

In its internal email, Infosys noted that the company had an overall strong performance in FY23 but also mentioned the market volatility and unexpected events of the recent quarter.

The email read, “While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events.”

In Q4 FY 23, Infosys posted a consolidated net profit of ₹6,128 crore, down by 15.68 per cent from a PAT of ₹7,283 crore in the preceding quarter. The IT giant also missed its annual guidance, reporting a full-year growth of 15.4 percent against the projected 16-16.5 percent.

This is indicative of the mounting pressure on the IT industry in light of the banking crisis that took place earlier this year.

Infosys had previously lowered the variable payout to 70 percent in Q1 FY23, followed by a further reduction to 65 percent in Q2.

Post Q4 results, CEO Salil Parekh said in a press conference, “”We have expanded our internal program on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients.”

As per exchange filings, attrition rate at the IT firm fell to 20.9 per cent in the March quarter compared with 24.3 per cent in December and 27.7 per cent. BusinessToday