Infosys rolls out 80% average variable payout for Q1
Bengaluru-based Infosys has announced that 80 per cent of the variable pay will be distributed to eligible employees for the quarter ending June 30, according to media reports.
This amount will be included with the August month’s salary.
In contrast, Infosys had paid out 60 per cent of the variable pay in the fourth quarter of financial year FY23.
The company reportedly informed its employees through an email that the rollout of the variable pay is a reflection of the “good performance” in the June quarter of FY24.
When contacted, Infosys did not provide a response to the email inquiry.
The internal email read, “We delivered a good performance in Q1, setting a robust foundation for future expansion.
“We remained committed to helping businesses accelerate their digital journeys and catering to emerging client requirements.”
It further elaborated, “By staying focused on our priorities, collaborating closely across teams, and remaining adaptable to changing circumstances, we are confident in setting ourselves up for a productive and optimistic quarter ahead.”
This development follows Infosys’ decision to lower its revenue guidance for FY24 to a growth range of 1-3.5 per cent, down from the 4-7 per cent previously projected.
“Even as we have won two mega deals recently, we have a strong pipeline of large and mega deals.
“We see revenue from some of these and other large deals towards the later part of our financial year.
“Keeping that in mind, we are changing our revenue growth guidance for this financial year to growth of between 1 per cent to 3.5 per cent in constant currency,” Infosys’ CEO, Salil Parekh, stated during the Q1 earnings call.
The adjustment in revenue guidance, coupled with the increase in variable pay, signifies Infosys’ nuanced approach to balancing employee rewards with changing business dynamics and expectations for the remainder of the financial year.
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