Indian IT giant Infosys has cut back on variable pay second time in a row in this financial year. The company announced in an internal email that eligible employees would be handed 65 per cent variable pay for the July quarter of FY23.
The email sent out to employees on Wednesday read, “The average payout at an organization level is 65% for Q2FY23. Individual payout percentages will differ based on individual performance and contribution for the quarter.”
Business Today had reported earlier this month that the company had announced 60 per cent variable pay for employees in the J4, J5, and J6 bands as per an internal communication.
“On the basis of the company’s performance in the Q2 FY’23, the board has approved performance bonus payouts as mentioned below JL 4- 60%, JL 5 – 60%, JL 6 – 60%,” the internal communication noted.
Infosys declared a net profit of Rs 6,021 crore for the September 2022 quarter, marking a growth of 11.1 per cent as compared with Rs 5,421 crore in the September 2021 quarter.
Moreover, the IT giant’s revenue spiked 23.4 per cent to Rs 36,538 crore, as compared to Rs 29,602 crore in the year-ago quarter.
During the earnings call, Salil Parekh, CEO of the company said, “With regard to variable pay, we don’t share that number externally.”
Infosys has been cutting back on variable pay since the past few quarters. The average variable payout made to employees in April to June quarter was 70 per cent. The company has noted that this is because of pressure on margins due to the wider economic downturn in the West.
Not just Infosys, but other IT/ ITeS companies like TCS and Wipro are also cutting back on variable pay because of pressure on margins. TCS announced in its quarterly earnings that they would hand out variable pay to only 70 per cent of its employees while Wipro announced that they would compensate only 85 per cent of their employees with variable pay in Q2FY23. BusinessToday