Infosys Delivers 85% Bonus Payouts for Q2FY25, Surpassing TCS in Employee Rewards
Infosys has once again demonstrated its commitment to employee satisfaction by issuing an impressive 85% bonus payout for the second quarter of FY25. This development highlights Infosys’ stronger performance in employee rewards compared to its industry rival, Tata Consultancy Services (TCS).
The bonus announcement, made on November 25 and 26, applies to eligible junior and mid-level employees, classified under Band 6 and below. These payouts are part of Infosys’ quarterly bonus structure, with percentages varying based on individual performance.
This move comes in stark contrast to TCS, where reports revealed that some employees received a reduced bonus of only 20-40%, while others missed out entirely, despite complying with TCS’s mandatory work-from-office policy.
Performance-Based Rewards vs. Cost Management
Infosys’ decision to maintain robust bonus payouts, even amidst challenging market conditions, showcases its focus on employee morale. Unlike TCS, which linked bonus reductions to cost management during tepid demand, Infosys did not tie payouts to work-from-office mandates.
In an email to employees, Infosys attributed its strong performance to a strategic emphasis on cloud services and generative AI. The company’s net profit for Q2FY25 rose by 2.2% sequentially to ₹6,506 crore, while revenue surged by 4.2% to ₹40,986 crore. Buoyed by these results, Infosys raised its full-year revenue growth guidance to 3.75-4.5%, an increase from the earlier projection of 3-4% announced in July.
Wage Hikes Deferred Amid Demand Uncertainty
While Infosys leads in employee incentives, it has joined other major IT firms in postponing wage hikes to Q3FY25. This step reflects a cautious approach to managing costs in a sluggish demand environment, ensuring sustained profitability without compromising on variable pay for its workforce.
The contrasting strategies of Infosys and TCS underscore the varying approaches within India’s IT sector to balance business challenges and employee engagement. With Infosys leading the charge in rewarding performance, the industry will closely watch how these decisions impact talent retention and market competitiveness.
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