Infosys is said to have mailed some of its staff announcing a 60 percent variable pay on average for certain levels of its business process management (BPM) employees for the second quarter of FY23. This would be a steep cut since, in the preceding April-June quarter, the company awarded 70 percent variable pay on average to all its employees.

According to the emails seen by CNBC-TV18.com, the CnB team of Infosys wrote to employees saying: “Performance bonus forms an integral part of the compensation philosophy at Infosys BPM, and we reward an employee’s performance and contribution through the quarterly performance bonus.”

The mail by the Bengaluru-based company added, “Based on the company's performance in the Q2 FY23, the board has approved bonus payouts as mentioned below JL 4- 60 percent, JL 5 - 60 percent, JL 6 - 60 percent.”

The pay was to be given out along with October salaries, as per the mail.

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Meanwhile, India’s largest IT company by revenue Tata Consultancy Services announced that it would award a 100 percent variable pay for 70 percent of its employees for the September quarter.

Wipro had also announced in the post-earnings briefing that it would be giving 100 percent of variable pay to 85 percent of employees for the second quarter.

For the July-September quarter, Infosys reported good revenue despite fears of a global recession clouding the outlook for tech spending. Profit grew 11.1 percent to Rs 6,021 crore from Rs 5,421 in the corresponding period a year ago. Meanwhile, revenue rose 23.4 percent to Rs 36,538 crore in Q2 FY23 as against Rs 29,602 crore in same quarter in FY22.

The operating margin declined, and Infosys lowered the upper end of its estimates on higher wage costs. It now expects constant currency revenue to grow 15-16 percent for FY23 and operating margin in the range of 21 percent to 22 percent.

Infosys’s operating margin narrowed to 21.5 percent for the September quarter from 23.6 percent in the corresponding period a year ago.

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