New Delhi:
IT (information technology) services company Infosys will provide 65% variable pay to its employees for the July FY23 quarter, lower than what it offered for the June quarter, Economic Times reported citing an internal email.
According to the internal email, the average variable pay is 65%, but the individual payout percentage will depend on performance. “The average payout at the organization level is 65% for Q2FY23. Individual payout percentages will vary based on individual performance and contribution for the quarter,” said the email, accessed by ET.
Infosys will roll out the variable pay for employees in the United States and Canada with their second biweekly payroll in November, the report said.
Variable pay is tied to employee and company performance. It is usually included in the total salary package of the employees.
Earlier, the second-largest IT company in India informed its employees about reducing variable compensation for Q1 FY23 to 70%. On the other hand, Wipro, Infosys’ rival, had withheld variable pay for mid- and senior-level employees in mid-August. The company had fixed payouts of 70% of full variable compensation for junior employees. According to an email sent to staff, the company blamed disappointing margins in the June quarter.
However, Tata Consultancy Services (TCS) has not reduced variable compensation for the March-June quarter of fiscal year 2022-2023. Several reports claimed that TCS delayed the rollout of variable compensation for senior employees for the first quarter. TCS provided a clarification stating that it had not delayed the rollout and will pay the 100% variable compensation to employees
But for the second quarter or the July-September quarter, TCS will only roll out variable compensation to 70% of its employees. The remaining 30% of employees are paid based on the performance of their business unit, said Milind Lakkad, the chief human resource officer at TCS, according to Business Today.
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