Variable Pay in Infosys 2023

Variable pay refers to the portion of an employee's compensation that is based on performance metrics rather than a fixed salary. Infosys offers variable pay to employees as bonuses, incentives, or commissions. The percentage of variable pay differs by job level and department. On average, Infosys employees receive around 70% of their potential variable pay. However, some employees have received as high as 95% while others received none. Variable pay is paid on a quarterly basis and the amount depends on factors like company growth, unit performance, individual performance, etc.

Important Details - Infosys Variable Pay
Type Details
Calculation Basis Company growth, unit performance, individual performance
Payment Frequency Quarterly
Average Percentage Around 70% of potential amount
Range 0% to 95%


Components of Infosys Salary

Component Details
Fixed Pay Fixed base salary mentioned in offer letter
Variable Pay Performance linked bonus - around 70% paid out
Deductions Tax, PF, facilities charges etc.


An Infosys salary package comprises of fixed pay that is a guaranteed base amount mentioned in the offer letter. Variable pay forms the remaining percentage and is linked to performance. Various deductions are made from the salary including tax, PF contributions and charges for facilities used.


Eligibility for Variable Pay

Employee Group Average Variable Payout
JL4 60%
JL5 60%
JL6 60%


As per internal communication, employees at job levels 4, 5 and 6 receive an average 60% variable pay based on that particular quarter's company performance. Specific guidelines determine pay for other job levels and departments.


Calculation and Disbursement

Performance Bonus Policy

Quarter Disbursement Month
Q1 FY 2023 August 2022
Q2 FY 2023 November 2022
Q3 FY 2023 February 2023
Q4 FY 2023 May 2023


Variable bonuses at Infosys are calculated on a quarterly basis and disbursed in the middle of the following quarter. For instance, Q1 performance bonus was disbursed in August and Q2 will be paid in November.


Employee Feedback

HR Communications

Issue Employee Concern
Average Payout Reduction Lack of clarity on specific compensation guidelines
Last minute delays Difficulty planning personal finances
Inconsistent payouts Impacts motivation and trust


While most employees understand performance linkage, there are concerns regarding transparency of guidelines, changes at short notice and varying payouts over quarters - which impacts planning and perception of management.


Conclusion:

To summarize, Infosys offers employees variable compensation in addition to fixed salary, aiming to reward performance and boost motivation. The variable percentage differs across levels and departments with an average of 60-70%. Calculation, eligibility criteria and payment frequency could be made more clear and consistent to improve staff satisfaction. Management also needs to effectively address concerns regarding last minute changes.


FAQ:


Q1: What is the average variable pay percentage at Infosys?


A1: The average variable pay percentage at Infosys is around 70% of the total potential variable component. However, it may range from 0% to 95% based on company and individual performance.


Q2: How frequently is variable pay given at Infosys?


A2: Infosys provides variable pay on a quarterly basis in the middle of the following quarter. For instance, Q1 variable bonus is disbursed in August.


Q3: What factors determine an employee's variable compensation?


A3: The main factors are - company growth, unit financial performance, individual goals and project achievements relative to targets. Guidelines differ across job levels and departments.


Q4: What are some employee concerns regarding variable pay?


A4: Main concerns include lack of transparency in calculation metrics, last minute changes causing planning issues and inconsistent payouts affecting staff motivation.


Q5: Who is eligible for variable pay at Infosys?


A5: Most employees are eligible for some component of variable compensation. Average payout percentages are communicated to employees at JL4, JL5 and JL6 levels. Specific guidelines apply for other designations.


Q6: What is the difference between fixed and variable salary?


A6: Fixed pay is the guaranteed base amount mentioned in the offer letter. Variable pay is the bonus part linked to performance metrics - relative achievement of targets.

 

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