India's second largest IT company Infosys has made a big announcement. According to the news, 85 percent bonus will be issued to eligible employees for the second quarter ending on September 30 of the current financial year (FY25). According to the news of Moneycontrol, letters informing employees about the variable pay-out were sent on 25 and 26 November.


Who will be given the bonus?
The bonus will be distributed to employees in band 6 and below, which includes junior to mid-level employees who receive quarterly bonuses. The distribution of bonuses will vary based on individual performance. An email sent to the company seeking comment did not elicit a response by the time of publication.

The development comes days after Moneycontrol reported that sector giant Tata Consultancy Services (TCS) had cut variable pay at the senior level for the September quarter due to weak demand. Still, Infosys has performed better than its larger rival in this regard.

Some TCS employees received only 20%-40% of their quarterly variable payout, while others received nothing despite complying with the company's mandatory work-from-office policy.


People associated with this matter told Moneycontrol that despite the company following the work-from-office standard, TCS has cut variable pay for employees in July-September. Uncertainty of demand remains in the business. On the other hand, Infosys has not linked variable payouts to work-from-office.


What was in the mail?
The email sent to employees details the company's strong performance in Q2. It attributed its success to the dedication of employees and its strategic focus on cloud and generative artificial intelligence (Gen AI) services.

Infosys reported a 2.2 per cent sequential rise in net profit for Q2FY25 to Rs 6,506 crore. The company's earnings for the period saw a robust 4.2 per cent growth, totalling Rs 40,986 crore.

The company raised its full-year earnings growth guidance to 3.75-4.5% based on the unexpected 3-4% increase announced in July.