Infosys Cuts Average Variable Pay To 70% For June Quarter: Report

Infosys Cuts Average Variable Pay To 70% For June Quarter: Report

According to sources, India’s second-largest IT services provider Infosys reduced its average variable payout for employees by 70% in the June quarter. This was due to margin squeezes and rising employee costs.

Recent Wipro cuts back on variable compensation for employees due to margin pressure, inefficiency of its talent supply chain, and investments in technology. Tata Consultancy Sevices, which is a bigger rival, has delayed some employees’ quarterly variable pay payouts by about a month.

Sources claim Infosys reduced the variable pay for Q1 FY23, June quarter, to 70%. Employees have been informed.

Infosys did not respond to an e-mail on the subject.

Infosys posted a 3.2% decrease in net profits for the June quarter, despite rising costs. This was lower than expected. The company increased its revenue growth forecast for the full year to 14%-16% citing strong demand as well as a robust pipeline of deals.