After Wipro, Infosys Introduces Cuts In Variable Pay

For the June-ending quarter, Infosys has introduced a cut in the variable pay of employees to about 70 per cent on average due to the impact on its margin. 

After Wipro’s cuts in variable pay, Infosys has also informed its employees of slashes in their variable pay. Infosys will be handing out an average payout bonus of 70 per cent for Q1 FY23.

The slash has been prompted by margin impact in the current quarter.

During the quarter ending in June, Infosys’ margins had come down by 150 basis points sequentially to 20.1 per cent, which is a 3.6 per cent decline YoY and a decline of 1.4 per cent QoQ. However, the company has maintained its margin guidance at 21-23 per cent.

Earlier this week, in an e-mail to its senior employees and the C band, Wipro said that it is holding back the variable pay. Meanwhile, the A and B band Wipro employees would get 70 per cent of the variable payout.

The move from Wipro came due pressure on its margins.