Bengaluru-based IT giant Infosys will reportedly pay its employees 65 per cent variable pay for the second quarter (Q2) after cutting their variable pay by 30 per cent in the previous quarter. As per reports, the variable pay will be available to all the company's eligible employees and will be made in the November payroll cycle. However, detailed information on the variable pay is reportedly expected to be delivered to the employees on November 17.
According to a report by the Economic Times, the payout for employees working in the United States and Canada will be completed alongside the second biweekly November payroll.
The report cites an internal email that reads, “The average payout at an organization level is 65 per cent for Q2FY23. Individual payout percentages will differ based on individual performance and contribution for the quarter."
The variable pay percentage for the July-September quarter was reportedly lower than the 70 per cent average variable pay it had provided to workers during the April-June quarter. However, Infosys claimed that operating margin pressure was responsible for this difference.
As per reports, for the three months that ended on September 30, Infosys, the nation's second-largest software exporter by revenue, paid its business process management (BPM) employees an average of 60 per cent variable compensation.
According to the Economic Times, which cited an email issued to the appropriate group of BPM employees, it has paid out for J4 to J6 levels, or systems engineer to project manager levels. With most of their BPM employees based in India, Infosys employs over 50,000 people worldwide.
In comparison to September 2021 quarter's net profit of Rs 5,421 crore, Infosys reportedly declared a net profit of Rs 6,021 crore for the September 2022 quarter, showing an increase of 11.1 per cent. Additionally, the IT giant's sales increased by 23.4 per cent to Rs 36,538 crore from Rs 29,602 crore in the same quarter last year.
