Infosys cuts average variable pay

Infosys, India’s second-largest IT services company, has scaled back the average variable payout of employees to about 70 per cent for the June quarter amid a squeeze in margins and high employee costs, according to sources.

Recently, Wipro held back the variable pay of employees mainly because of the pressure on margins, inefficiency in its talent supply chain and investment in technology. Larger rival Tata Consultancy Services has reportedly delayed quarterly variable compensation payout of some employees by a month.

According to the sources, Infosys has reduced variable payout for the June quarter, or Q1 FY23, to about 70 per cent and employees have been informed about the decision. An email sent to Infosys did not elicit a response. Last month, Infosys reported a lower-than-estimated 3.2 per cent rise in June quarter net profit amid escalating costs. However, the company raised its full-year revenue growth outlook to 14-16 per cent citing strong demand and robust deal pipeline.