Infosys Employees to Receive Lower Q4 Bonuses on Back of Profit Decline

Infosys, India’s second-largest IT services firm, is taking a conservative stance on employee compensation after posting a decline in quarterly profits. According to The Economic Times, the company has informed several employees that their performance bonuses for the fourth quarter of FY 2024-25 will be lower than anticipated. 

This decision comes in the wake of tighter margins and a less optimistic revenue outlook for the upcoming financial year.

Infosys Cuts Q4 Bonuses After Profit Slump

Infosys has reported a net profit of ₹7,033 crore for Q4 FY25, marking an 11.7% decline compared to the previous year. This drop is largely due to higher selling and marketing expenses. While revenue grew by 7.9% year-on-year to ₹40,925 crore, it still fell short of Street expectations.

During a recent conference bridge call, senior HR executives and managers informed employees from a large delivery unit about the reduced bonus payouts.

Industry-Wide Struggles Cast a Shadow on IT Salaries

The situation at Infosys reflects broader challenges in the Indian IT sector. According to The Economic Times, Tata Consultancy Services (TCS) recently deferred its annual wage hikes for over 607,000 employees due to global business uncertainties. Despite this, the company paid 100% of the Quarterly Variable Allowance (QVA) to more than 70% of its employees for the January-March quarter.

Meanwhile, Wipro has remained silent on salary hikes so far, the report added. Infosys, on its part, had issued salary revision letters in February, offering most employees a 5-8% hike. Additionally, it noted that for Q3 FY25, the company paid an average of 80% performance bonus to eligible employees across delivery and sales units.

Read More: TCS Defers Salary Hikes Amid Tariff War; Q4 Profit Falls Marginally.

Infosys Share Performance 

As of May 14, 2025, at 11:40 AM, Infosys share price is trading at ₹1,586.50 per share, a surge of 1.14% from the previous closing price. Over the past month, the stock has surged by 11.26%.

Conclusion

The bonus reductions at Infosys mark a cautious shift in compensation trends amid declining profits and weaker revenue forecasts. With global uncertainties looming, India’s IT firms are adjusting their employee reward strategies to align with evolving financial realities.

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