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Infosys employees are set to receive lower-than-expected performance bonuses for Q4 FY25, as the company grapples with persistent uncertainties in the global software services industry. This follows a sharp 11.7% decline in net profit, amounting to ₹7,033 crore for the quarter.

HR Communicates Cuts, Says It’s a Temporary Phase

During a recent internal conference call, HR executives and delivery managers informed employees about the subdued bonus payouts. While acknowledging their hard work — including extended hours and weekend efforts — leaders stressed that this downturn is temporary. Top performers were assured of favorable bonus recommendations during the next growth cycle.

Revenue Guidance Signals Cautious Outlook

Alongside the profit drop, Infosys issued a muted revenue growth outlook for FY26, indicating a cautious approach amid ongoing market volatility. The company’s focus appears to be on maintaining financial stability while navigating slow client spending and prolonged deal closures across global markets.

Context: Salary Hikes and Bonus Trends at Infosys

Earlier this year, Infosys had rolled out salary hikes ranging between 5% and 8% for most employees. For Q3 FY25 (ending December), the company had distributed average bonuses of 80% to staff in delivery and sales functions — a significant portion of its over 323,000-strong workforce.

Past Rewards Highlight Long-Term Commitment

Company leaders emphasized that during stronger business cycles, Infosys has consistently rewarded its workforce with generous hikes, promotions, and international opportunities. The current measures, they said, are part of short-term belt-tightening and do not reflect a shift in the company’s long-term employee engagement strategy.

The reduced Q4 bonuses at Infosys reflect broader pressures facing India’s IT services sector. However, by assuring future compensation for top performers, Infosys aims to retain morale and signal commitment to its people during a period of industry-wide caution.