Infosys Cuts Average Variable Pay of Employees by 70% – Full Details are Here!!! India’s second-largest company Infosys cuts average variable pay for it’s employees by 70 percent in the June quarter due to tight margins and higher labor costs. In a statement to employees, the company maintained a margin guidance of 21 to 23 percent.
This move was taken due to rising employee benefit costs, subcontracting costs and travel costs. Meanwhile, compensation increases eased by 160 basis points due to the influx of new employees. Commenting on this, Infosys Chief Financial Officer (CFO) Nilanjan Roy said that while the announcement will affect employees, it will reduce attrition and position the company for future growth.
Apart from this, India’s leading IT companies Wipro and Tata Consultancy Services (TCS) have stopped performance bonuses and differential payments for their employees. In particular, TCS delayed the performance bonus of its employees by one month. Similarly, Wipro has suspended variable pay for its C band employees and above. But it has been announced that those in the A and B bands of the company will get 70 percent of the target money.
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