According to recent reports, Infosys, a large Indian IT company, has reduced the variable pay for certain employees for Q1 of the current financial year 2023 to 60%.
An internal memo shared among employees states that the average variable payout for employees in the J4, J5, and J6 bands will be 60%.
An internal email sent to employees stated that the performance pay is based on the company’s performance during the quarter. The email stated, “Based on the company’s performance in Q1 FY’23, the board has approved performance bonus payouts as follows: JL 4- 60%, JL 5 – 60%, JL 6 – 60%.”
Infosys reported a net profit of Rs 6,021 crore for the September 2022 quarter, representing an 11.1% increase from the Rs 5,421 crore in the September 2021 quarter.
Additionally, the revenue of the IT company increased significantly by 23.4% to reach Rs 36,538 crore, in comparison to Rs 29,602 crore in the same quarter of the previous year.
During the earnings call, the CEO of the company, Salil Parekh, stated that they do not disclose the variable pay number externally.
Employee unions have expressed dissatisfaction with the reduction in variable pay. Harpreet Singh Saluja, President of Nascent Information Technology Employees Senate (NITES) said to Business Today, “On one hand, employees are struggling with inflation and on the other hand, Infosys is decreasing variable pay. The company recently reported an 11.10% year-over-year increase in consolidated net profit at Rs 6,021 crore in the September quarter compared to Rs 5,421 crore in the same quarter last year. Large deals for the last quarter were robust at $2.7 billion, the highest in the past seven quarters. Therefore, it is completely unethically and unacceptable from the employee’s perspective, who are the backbone of the organization.”
It is important to note that in the previous quarter, the company reduced the variable payout to its employees by 30%.