Infosys’ variable payment for the third quarter dropped from 80% to 73%

Indian IT behemoth Infosys cut its average variable pay to 73% for its workers in the third quarter of the current fiscal year, after offering variable payments of almost 80% for the previous two quarters.

For the March quarter of FY23, Infosys cut its variable compensation to 60%, citing difficulties in the global macroeconomic environment. According to a source, the variable payment in Q3 varied from 65% to 105%, despite the average payout being 73%. Prior to going to press, Infosys did not respond to questions addressed to it.

The IT giant with headquarters in Bengaluru withheld pay increases from staff for around five months in an attempt to increase profits. Eventually, in December of last year, the bulk of the workforce received the raises. For the third consecutive quarter, Infosys has lowered its revenue forecast due to a vague and unpredictable macroenvironment, where customers remain unsure about the advantages of investing in technology.

The IT behemoth reduced its second revised FY24 revenue target of 1 to 2.5%, which it had projected at the Q2 results releases, to 1.5% to 2% for sales. The first updated advice for the IT major was released in July and varied from 1% to 3.5%. The corporation issued a 4% to 7% projection range at the beginning of current fiscal year. Infosys, on the other hand, stuck to its operating margin target of 20%–22%.

Although cross-town competitor Wipro has not yet distributed its Q3 variable pay to its staff, it did provide Q2 staff with a regular 80% variable pay. The variable reward will be based on three factors: revenue (40%), gross margin (30%), and total contract value (30%), according to a recent email from Wipro to staff.