Infosys employees see 15 percentage point drop in bonus amid Middle East tensions, macro headwinds

On Monday, Infosys announced an average performance bonus of 70% for Q4FY26, 15 percentage points lower than the bonus the software major gave in the December quarter.

The previous bonus of 85% came on the back of good business performance and deal wins. The steep drop this time reflects the rough patch the software sector is passing through amid the AI scare and macroeconomic uncertainty.

The latest round of bonuses range between 63% and 82%.


Employees at job level (JL) 4 and 5 have received a slightly better payout than those at JL 6. Outstanding performers at JL 4 and 5 got 82% and 79% respectively, better than similar achievers at JL6, who got 77%.

Infosys, last month, reported a 21% on-year rise in consolidated net profit for the fourth quarter, at Rs 8,501 crore, while forecasting an annual revenue growth that fell short of expectations.

Employees at levels 4, 5, and 6, who make up the bulk of its 328,594-strong workforce, have received the bonus (the senior leadership is outside the purview of this exercise). The assessment categories were ‘outstanding’, ‘commendable’, and ‘met expectations.’ A fourth `non-applicable’ category of employees also received payouts.

Sections of employees ET spoke to said they are waiting to hear from the management on the annual pay hikes. Infosys released employee-wise ratings in December, after completing the appraisal for the period November 2024 to October 2025.

The Bengaluru-headquartered company did not respond to queries till press time.

Last year, the software giant gave hikes ranging between 5-8%.