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Infosys Announces 65% Q4FY25 Bonus Payout Amid Macro Headwinds

Written by: Team Angel OneUpdated on: May 16, 2025, 1:38 PM IST
Infosys cuts Q4 bonus to 65% for Band 6 and below, marking the 3rd straight dip as profits fall and internal exits rise amid macroeconomic pressure.
Infosys Announces 65% Q4FY25 Bonus Payout Amid Macro Headwinds
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Infosys has issued an average performance bonus of 65% for the fourth quarter of FY25. The payout applies to employees in Band 6 and below and will be processed in the May 2025 payroll cycle, according to a Moneycontrol news report.

As of 12:51 PM on May 16, 2025,  Infosys share price was trading at ₹1,586.50, a 1.64% decrease, with a 12.25% decline over the past six months and a 9.37% increase over the past year.

Bonus Payout Slips for Third Quarter in a Row

In Q3FY25, the company had issued an average bonus payout of 80%. In Q2FY25, it was 90%. Actual payouts vary by performance rating, employees rated “Outstanding” will receive 83%, while those rated “Needs Improvement” will receive no payout.

Infosys referenced a "complex macroeconomic environment” in its internal communication, stating that the company remained focused on market needs during the quarter. The email was accessed and reported by Moneycontrol.

Infosys reported a net profit of ₹7,033 crore for Q4FY25, down 12% from ₹7,969 crore in Q4FY24. Revenue for the March quarter rose 8% year-on-year to ₹40,925 crore. For FY26, Infosys has forecasted revenue growth of 0–3% in constant currency terms.

Trainee Exits After Internal Assessments

As per the news reports, Infosys has exited nearly 600 trainees since February 2025. In April alone, 240 were released after failing to clear internal assessments. This followed 300 exits in February and around 30-35 in March. The company offered affected trainees two external training options: a 12-week course for BPM roles and a 24-week IT fundamentals course. About 250 trainees have enrolled. Another 150 have registered for outplacement assistance.

Read more: TCS vs Infosys vs Wipro: Which IT Giant Delivered Highest Profits in Q4FY25?

Similar Steps at TCS

According to a Moneycontrol news report, on May 7, Tata Consultancy Services reduced variable pay for senior employees in Q4FY25. Most received 20-30% of their eligible payout. This was the third consecutive quarter of such reductions.

Conclusion

The bonus cut and internal exits at Infosys come amid a broader slowdown in IT sector growth and hiring activity. The announcement arrives as IT firms navigate an environment of subdued client spending and extended decision-making processes in crucial markets.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: May 16, 2025, 1:38 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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