Indian IT giant Infosys has slashed the variable pay of certain employees for the second quarter of the ongoing financial year to 60 per cent, Business Today has learned.
As per an internal communication circulated among employees, the average variable payout to employees in the J4, J5, and J6 bands is 60 per cent.
The internal email read that the performance pay depends on the company’s performance in the quarter. The email noted, “On the basis of the company's performance in the Q2 FY'23, the board has approved performance bonus payouts as mentioned below JL 4- 60%, JL 5 - 60%, JL 6 - 60%.”
Infosys declared a net profit of Rs 6,021 crore for the September 2022 quarter, marking a growth of 11.1 per cent as compared with Rs 5,421 crore in the September 2021 quarter.
Moreover, the IT giant’s revenue spiked 23.4 per cent to Rs 36,538 crore, as compared to Rs 29,602 crore in the year-ago quarter.
During the earnings call, Salil Parekh, CEO of the company said, “With regard to variable pay, we don't share that number externally.
Employee unions did not take this cut in variable pay well. Harpreet Singh Saluja, President of Nascent Information Technology Employees Senate (NITES) told Business Today, “On one side the employees are struggling with inflation and on the other side Infosys is increasing deductions in variable pay. The company has last month reported an 11.10 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,021 crore in September quarter compared with Rs 5,421 crore in the corresponding quarter last year. Large deal wins for the last quarter was robust at $2.7 billion, highest in last seven quarters. Hence it is completely unethical and unacceptable from the employees perspective who are the backbone of the organization.”
It is worth noting that the company slashed the variable payout to its employees by 30 per cent in the previous quarter.
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