“The average payout at an organization level is 65% for Q2FY23. Individual payout percentages will differ based on individual performance and contribution for the quarter,” the company said in an email on Wednesday. ET has reviewed a copy of the email.
For employees in the United States and Canada, the payout will be processed along with the second biweekly November payroll.
Direct communication to the employees about the variable pay will be sent on November 17. Infosys did not respond to ET’s email seeking comment till press time Wednesday.
The July-September quarter’s variable pay percentage is lower than the 70% variable pay on average it had given to employees for the April-June quarter. Infosys had then said that this was due to pressure on operating margins.
The Indian IT industry is staring at an uncertain demand environment with an impending recession in its key market – United States – while also battling a squeeze on margins due to issues such as high employee attrition.
India’s largest software services firm by revenue Tata Consultancy Services (TCS) has said that it will give 100% variable pay for 70% of its employees for the quarter. The rest of the employees will be given variable pay based on their business unit’s performance.
Infosys’ crosstown rival Wipro has also paid 100% variable pay for th eJuly-September quarter up to team leader levels.
Bengaluru-based Infosys, the country’s second largest software exporter by revenue, had given out 60% variable pay on average for certain levels of its business process management (BPM) employees for the quarter ended September 30, ET reported earlier this month.
It had paid out for J4 to J6 levels – systems engineer to project manager levels, Et reported citing an email sent to the respective band of BPM employees.
Infosys has over 50,000 BPM workers worldwide, with most operating out of India.