Infosys has announced a generous 80% performance bonus for most of its employees for Q1 FY26, thanks to better-than-expected growth.
This decision, shared through an internal memo, brings relief to employees amid ongoing uncertainty in the IT sector and shows Infosys’ focus on rewarding strong performance.
Bonus Distribution by Levels
The bonus amounts are linked to performance ratings and differ across employee levels. At the PL4 level, employees rated as “outstanding” will get an 89% bonus, while those who “met expectations” will receive 80%.
Similarly, at the PL5 and PL6 levels, bonus payouts range from 75% to 87%, based on performance ratings.
Even those rated as “needs attention” are getting bonuses—80% at PL4, 78% at PL5, and 75% at PL6—ensuring most employees are rewarded, regardless of rating.
Q1 Growth Fuels Bonus Decision
This bonus decision comes after Infosys posted a 3.8% growth in constant currency terms in Q1 FY26, beating market forecasts.
In comparison, its larger competitor TCS reported a 3.1% revenue drop, which underlines Infosys’ strong performance despite global economic uncertainties.
The company also narrowed its growth guidance range, suggesting better visibility of upcoming projects and deals, even with the challenges.
Who Benefits
The bonus mainly benefits junior to mid-senior level employees, who make up a large portion of Infosys’ workforce.
However, there’s no official word yet on bonus amounts or timelines for senior management.
Infosys has informed employees that their performance bonus letters will soon be available in their personal e-dockets.
Industry-Wide Trends
This move reflects a wider trend in the IT industry. TCS and Cognizant have already announced salary hikes for their employees starting in September and November respectively.
On the other hand, Wipro has not made any announcements so far. These bonus and hike announcements suggest a cautious optimism across the IT sector, as companies try to manage growth while dealing with global challenges.
