Infosys reduces average variable pay to 70% for June quarter amid margin squeeze

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

Recently, Wipro held back the variable pay of employees mainly due to pressure on margins, inefficiency in its talent supply chain and investment in technology. Larger rival Tata Consultancy Sevices has reportedly delayed quarterly variable compensation payout for 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 the employees have been informed about the same.