Infosys, a top Indian IT services giant, has announced its performance bonus for the first quarter of FY26, with employees set to receive an average payout of 80% across the organisation, as per an internal source. The move comes after the Bengaluru-based tech major reported a strong Q1 performance, beating market expectations on both revenue and profit.
The payout percentages are linked to employee performance across different levels. For PL4 employees, bonuses will range from 80% to 89%, while PL5 employees will receive between 78% and 87%. At the PL6 level, the payout stands between 75% and 85%, depending on performance ratings.
“Outstanding” performers will receive 89% of their eligible bonus.
Employees rated under “Needs Attention” will get 80%.
Bonus ranges from 78% to 87%, tied to performance ratings.
Top-rated employees will get 85%.
Lower performers will receive 75%.
Infosys also mentioned that individual performance bonus letters will be uploaded to employees’ e-dockets.
On July 23, 2025, Infosys announced an 8.7% year-on-year growth in net profit, reaching ₹6,921 crore for Q1FY26. Revenue also surged 7.5% to ₹42,279 crore, surpassing Street estimates. These results highlight the company’s resilient growth despite global IT spending challenges.
The bonus distribution applies to Band 6 and below employees, primarily covering junior to mid-level staff, who are entitled to quarterly performance-linked incentives.
The average payout of 80% this quarter marks a significant improvement compared to the 65% average in the previous quarter, reflecting the company’s robust financial recovery.
This development follows a wave of employee compensation-related announcements in the IT sector. On August 6, 2025, Tata Consultancy Services (TCS), India’s largest IT services firm, declared a wage hike effective from September 1. Interestingly, this came just days after reports suggested that TCS plans to lay off 12,000 employees during the current fiscal year.
The contrasting moves highlight the balancing act IT majors are undertaking — rewarding performers while optimizing workforce costs amid uncertain macroeconomic conditions.
Infosys is an Indian multinational IT services and consulting company. It was founded in 1981 by seven engineers with a seed capital of just $250. From its humble beginnings in Pune, Infosys grew to become a global leader in the IT industry, playing a pivotal role in India's emergence as a technology powerhouse.
The company was founded on July 2, 1981, as Infosys Consultants Private Limited. The seven co-founders were N. R. Narayana Murthy, Nandan Nilekani, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh, N. S. Raghavan, and Ashok Arora. The initial capital was reportedly borrowed from their spouses.
In 1983, the company's headquarters were relocated to Bengaluru (then Bangalore), a move that positioned Infosys at the heart of what would become India's Silicon Valley. In 1993, the company went public with an IPO on the Bombay Stock Exchange, and in 1999, it made history by becoming the first Indian company to be listed on NASDAQ.
The 1990s and 2000s were a period of rapid growth and expansion for Infosys. The company was a pioneer of the Global Delivery Model, which allowed it to provide high-quality, cost-effective software solutions to clients worldwide. This model helped establish India as a global destination for software services. Key milestones from this era include:
1996: The Infosys Foundation was established as the company's non-profit arm for corporate social responsibility initiatives.
1999: Infosys became the 21st company in the world to achieve a Capability Maturity Model (CMM) Level 5 certification, a testament to its commitment to quality.
2004: The company's annual revenue crossed the $1 billion mark.
2006: Infosys celebrated its 25th anniversary and its annual revenue crossed the $2 billion mark. N. R. Narayana Murthy retired as CEO, and the company began a new era of leadership.
In recent years, Infosys has focused on digital transformation, cloud computing, and artificial intelligence to meet the evolving needs of its clients. The company has made several key acquisitions to strengthen its capabilities in these areas, including Panaya and Skava.
Under the leadership of CEO and MD Salil Parekh, who took over in 2017, the company has continued to expand its global footprint and services. In 2023, Infosys was ranked in the top 3 IT services brands in the world by Brand Finance, a leading brand valuation firm.
As of the fiscal year 2025, Infosys's revenue crossed the $20 billion mark. The company's journey from a small startup to a global IT powerhouse is a remarkable story of vision, innovation, and perseverance.