Infosys has handed out a generous 80% performance bonus to most of its employees for Q1 FY26, following stronger-than-expected growth. The move, outlined in an internal memo, comes as a relief to employees amid ongoing uncertainty in the IT sector and highlights Infosys’ commitment to rewarding performance.
Bonus Structure Across Levels
The payout percentages are tied to performance ratings and vary across different levels. At the PL4 level, employees with an “outstanding” rating will receive an 89% payout, while those who “met expectations” will get 80%. Similarly, across PL5 and PL6 levels, payouts range between 75% and 87%, depending on performance. Even employees rated as “needs attention” have been assured bonuses of 80%, 78%, and 75% in PL4, PL5, and PL6 categories, respectively.
Strong Q1 Performance Drives Payouts
Infosys’ decision follows a 3.8% growth on constant currency basis in Q1 FY26, outperforming market expectations. In contrast, its larger rival TCS reported a 3.1% revenue decline, highlighting Infosys’ resilience amid global macroeconomic challenges. The company also narrowed its guidance range, indicating stronger visibility into deal pipelines despite persisting uncertainties.
Impact on Workforce
A majority of Infosys’ workforce—particularly junior to mid-senior level employees—will benefit from this payout. However, there is no confirmation yet regarding the bonus corpus or timelines for senior management. The company has assured employees that their performance bonus letters will be uploaded to individual e-dockets shortly.
Industry-Wide Trends
The move aligns with a broader trend among IT firms. TCS and Cognizant have recently announced salary hikes for employees starting September and November, while Wipro is yet to make any announcements. With variable payouts and hikes resuming, it signals cautious optimism across the IT services sector, even as companies balance growth opportunities with global headwinds.
