Infosys has significantly raised its performance bonuses for the first quarter of fiscal 2025–26, offering an average payout of 80% to eligible employees—mainly those in Band 6 and below—a notable jump from the previous quarter's average of around 65%. This decision underscores the company’s confidence in its growth momentum and its intent to strengthen employee engagement and retention in a highly competitive IT services market.

The enhanced bonus structure comes on the back of strong Q1 earnings. Infosys reported an 8.7% year-on-year rise in net profit to ₹6,921 crore and a 7.5% revenue growth to ₹42,279 crore, both of which exceeded market expectations. These results have enabled the company to prioritize employee rewards at a time when peers in the IT industry are tightening compensation due to global economic pressures.

Bonuses for employees in levels PL4, PL5, and PL6 are staggered based on performance ratings, reflecting a push to reinforce a high-performance culture. For PL4 employees, which include senior engineers and analysts, outstanding performers received up to 89% of their eligible bonus, while others meeting expectations received 80%. Even those needing improvement saw a payout of around 80%. For PL5 employees, typically track leads and mid-level roles, bonuses ranged between 78% and 87%. In the PL6 category, covering managerial roles, payouts varied between 75% and 85%. These performance-linked payouts demonstrate Infosys’s effort to reward both consistency and excellence.

The letters confirming these payouts have already been rolled out through Infosys’s internal e-docket system, creating a wave of optimism within the company’s workforce. 

The timing is particularly significant as the IT sector has been navigating a period of uncertainty, with other leading players like TCS, HCLTech, and Wipro facing challenges such as delayed salary hikes and cautious hiring practices.