Infosys cuts average variable payout to 70% for Q1 on margin pressure

Infosys reported its operating margin in Q1FY23 at 20.1% down from 21-23%. The overall expenses had surged more than 29 per cent due to higher retention costs and cross-currency headwinds.

India’s second-largest information technology (IT) firm Infosys has decided to reduce the average variable payout of employees to 70 per cent due to falling operating margins in the first quarter (Q1) of 2022-23 (FY23), said people in the know.

“The margin impact in the current quarter has reflected on the performance bonus for this cycle,” the company told its employees over email.

“While 70 per cent is the correct figure, an important point is we have been told that the company will not defer any variable payment. It is being paid according to schedule,” said a person.

Infosys reported its