BENGALURU: IT company Infosys has deducted 30% of average variable pay of employees for the June quarter on margin pressure. In its email to employees, the company said, “The average bonus payout for Q1FY23 is 70% at an organisation level and your final individual payment will be governed by your unit/department guidelines.”
The email to employees also said that the performance bonus payment for delivery (DEL) and business enabling functions (BEFs) for the first quarter is scheduled to take place in the August 2022 payroll.
“The company usually pays 100% and now it has said the payout is 70%. It has deducted 30% of variable pay, which is clear exploitation of IT employees. NITES strongly condemns the unethical deductions being implemented by Infosys,” Harpreet Singh Saluja, president of labour union Nascent Information Technology Employees Senate (NITES), said.
“Under the pretext of an uncertain economic environment, the company has withheld variable pay component of employees,” he added. Earlier, IT firms Wipro and TCS too cut variable payouts for the first quarter of this fiscal. Wipro said hikes to its staff will be effective from September 1, 2022, and that there is no change to its earlier statement on salary increase.
The statement comes after reports said it held back variable pay of employees. When asked, Wipro said in a statement to TNIE, “We have completed the first cycle of quarterly progressions effective July 1, 2022. We have no further comments on the quantum of variable pay.”