Infosys has reduced performance bonus payouts for the March quarter after disbursing its strongest variable pay in more than three years during the previous quarter, according to a recent report by Moneycontrol.
The average bonus payout for the fourth quarter of FY26 stood at around 70%, lower than the roughly 85% average payout in the December quarter. The earlier payout had been considered one of the strongest since the Covid period.
Across levels
As per the internal payout matrix, employees in personal level (PL) 4 received bonuses ranging between 67% and 82% across business units. Employees in PL5 received between 65% and 78%, while PL6 employees got payouts ranging from 63% to 77%.
PL bands are internal employee rating categories used by Infosys during appraisal cycles to measure performance and decide variable pay.
The payout percentages also differed across delivery and business segments.
“The performance bonus (PB) recommendation for Q4 FY2025-26 has been completed. The organisation average bonus payout stood at 70% for Q4 FY26,” the internal note said.
Previous quarter
The moderation comes just a quarter after Infosys rolled out variable payouts ranging from 75% to 100% for eligible mid and junior-level employees. Most employees had received payouts close to the 85% average at the time.
Employees had described the Q3 payout as among the best in recent years, with some receiving full variable pay, something rarely seen since the pandemic-led boom in the technology sector.
Infosys had steadily raised its variable payouts over recent quarters, moving from 65% to 80% before touching 85% in Q3.
Sector uncertainty
The lower Q4 payout comes at a time when the global technology industry continues to face uncertainty. Investor sentiment has remained cautious due to rapid advances in artificial intelligence and concerns over its long-term impact on traditional IT services business models.
Global IT stocks have also seen volatility in recent months as investors reassessed demand for legacy services work in the era of generative AI.