Employee Benefits (Tables)

12 Months Ended

Mar. 31, 2024

Disclosure of defined benefit plans [abstract]

Summary of Defined Benefit Plans Amount Recognized in Group's Financial Statements


							(Dollars in millions)
	Gratuity						Pension
	As of						As of
	March 31, 2024			March 31, 2023			March 31, 2024			March 31, 2023
Change in benefit obligations
Benefit obligations at the beginning	216			227			112			122
Transfer		4			—			—		2
Service cost	37			34			6			5
Interest expense	15			13			2				1
Remeasurements - Actuarial losses / (gains)		4			(9	)		3			(17	)
Past service cost - plan amendments		—			—			(4	)		—
Employee contribution		—			—			4			3
Benefits paid		(19	)		(33	)		(1	)		(6	)
Translation differences		(4	)		(16	)		–			2
Benefit obligations at the end	253			216			122			112
Change in plan assets
Fair value of plan assets at the beginning	214			226			106			111
Transfer		—			—			—		2
Interest Income	15			13			2				1
Remeasurements – Returns on plan assets excluding amounts included in interest income	2			4				2			(11	)
Employer contribution	40			22			6			5
Employee contribution		—			—		4			3
Benefits paid		(18	)		(32	)		(1	)		(6	)
Translation differences		(4	)		(19	)		—			1
Fair value of plan assets at the end	249			214			119			106
Funded status		(4	)		(2	)		(3	)		(6	)
Prepaid defined benefit plan asset		2		3			2			1
Accrued defined benefit plan liability		(6	)		(5	)		(5	)		(7	)

The following tables set out the funded status of the defined benefit provident fund plan of Infosys Limited and the amounts recognized in the Group's financial statements as of March 31, 2024, and March 31, 2023:


				(Dollars in millions)
	As of
	March 31, 2024				March 31, 2023
Change in benefit obligations
Benefit obligations at the beginning		1,281				1,228
Service cost		106				101
Employee contribution		200				210
Interest expense		92				78
Actuarial (gains) / loss		12				(10	)
Benefits paid		(246	)			(226	)
Translation differences		(21	)			(100	)
Benefit obligations at the end		1,424				1,281
Change in plan assets
Fair value of plan assets at the beginning		1,239				1,195
Interest income		89				76
Remeasurements- Return on plan assets excluding amounts included in interest income		28				(23	)
Employee contribution		200				210
Employer contribution		126				104
Benefits paid		(246	)			(226	)
Translation differences		(20	)			(97	)
Fair value of plan assets at the end		1,416				1,239
Accrued defined benefit plan liability		(8	)			(42	)

Summary of Defined Benefit Plan

Amount for fiscal 2024, 2023 and 2022 recognized in net profit in the statement of comprehensive income comprises the following components:


								(Dollars in millions)
	Gratuity							Pension
	Year ended March 31,							Year ended March 31,
	2024		2023		2022			2024			2023		2022
Service cost		37		34		29			6			5		5
Net interest on the net defined benefit liability / asset		—		—		(1	)		—			—		—
Plan amendments		—		—		—			(4	)		—		2
Net cost		37		34		28			2			5		7

Amount for fiscal 2024, 2023 and 2022 recognized in statement of other comprehensive income:


										(Dollars in millions)
	Gratuity									Pension
	Year ended March 31,									Year ended March 31,
	2024			2023			2022			2024			2023			2022
Re-measurements of the net defined benefit liability / (asset)
Actuarial (gains) / losses		4			(9	)		11			3			(17	)		(2	)
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability / (asset)		(2	)		(4	)		(3	)		(2	)		11			(7	)
Total		2			(13	)		8			1			(6	)		(9	)

Breakup of actuarial (gains) / losses for fiscal 2024, 2023 and 2022 is as follows:


									(Dollars in millions)
	Gratuity								Pension
	Year ended March 31,								Year ended March 31,
	2024		2023			2022			2024		2023			2022
(Gain) / loss from change in demographic assumptions		—		—			—			—		—			—
(Gain) / loss from change in financial assumptions		1		(8	)		(6	)		3		(18	)		(3	)
(Gain) / loss from change in experience adjustments		3		(1	)		17			—		1			1
		4		(9	)		11			3		(17	)		(2	)

The gratuity and pension cost recognized in the statement of comprehensive income apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost is as follows:


							(Dollars in millions)
	Gratuity						Pension
	Year ended March 31,						Year ended March 31,
	2024		2023		2022		2024		2023		2022
Cost of sales		34		31		25		2		5		6
Selling and marketing expenses		2		2		2		—		—		1
Administrative expenses		1		1		1		—		—		—
		37		34		28		2		5		7

Superannuation contributions have been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:


(Dollars in millions)
	Year ended March 31,
	2024		2023		2022
Cost of sales		56		55		44
Selling and marketing expenses		4		3		3
Administrative expenses		2		2		2
		62		60		49

Amount for fiscal 2024, 2023 and 2022 recognized in net profit in the statement of comprehensive income comprises the following components:


	(Dollars in millions)
	Year ended March 31,
	2024		2023		2022
Service cost		106		101		88
Net interest on the net defined benefit liability / asset		3		2		1
Net provident fund cost		109		103		89

Amount for fiscal 2024, 2023 and 2022 recognized in the consolidated statement of other comprehensive income:


				(Dollars in millions)
	Year ended March 31,
	2024				2023			2022
Remeasurements of the net defined benefit liability/ (asset)
Actuarial (gains) / losses		12				(10	)	16
(Return) / loss on plan assets excluding amounts included in the net interest on the net defined benefit liability/(asset)		(28	)			23		(2	)
		(16	)			13		14

Provident fund contributions have been apportioned between cost of sales, selling and marketing expenses and administrative expenses on the basis of direct employee cost as follows:


(Dollars in millions)
	Year ended March 31,
	2024		2023		2022
Cost of sales	137		134		106
Selling and marketing expenses	10		9		8
Administrative expenses	5		5		4
		152		148		118

Employee benefit costs include:


(Dollars in millions)
	Year ended March 31,
	2024		2023		2022
Salaries and bonus (1)		9,729		9,481		8,383
Defined contribution plans		81		78		64
Defined benefit plans		171		170		138
		9,981		9,729		8,585

(1)

Includes stock compensation expense of $79 million, $64 million and $56 million for fiscal 2024, 2023 and 2022, respectively. (Refer to Note 2.17)

The employee benefit cost is recognized in the following line items in the consolidated statement of comprehensive income:


(Dollars in millions)
	Year ended March 31,
	2024		2023		2022
Cost of sales		8,998		8,826		7,714
Selling and marketing expenses		656		598		572
Administrative expenses		327		305		299
		9,981		9,729		8,585

Summary of Weighted-Average Assumptions

The weighted-average assumptions used to determine benefit obligations as of March 31, 2024, and March 31, 2023 are set out below:


	Gratuity		Pension
	As of		As of
	March 31, 2024	March 31, 2023	March 31, 2024	March 31, 2023
Discount rate	7.0%	7.1%	1.5-3.4%	1.8% - 3.8%
Weighted average rate of increase in compensation levels	6.0%	6.0%	1.0%-3.0%	1.0% - 3.0%
Weighted average duration of defined benefit obligation	5.8 years	5.9 years	12 years	12 years

The weighted-average assumptions used to determine net periodic benefit cost for fiscal 2024, 2023 and 2022 are set out below:


	Gratuity			Pension
	Year ended March 31,			Year ended March 31,
	2024	2023	2022	2024	2023	2022
Discount rate for the year	7.1%	6.5%	6.1%	1.8%-3.8%	0.4% - 1.7%	0.1% - 0.9%
Weighted average rate of increase in compensation levels	6.0%	6.0%	6.0%	1.0%-3.0%	1.0%-3.0%	1.0%-3.0%


Discount rate		For domestic defined benefit plan in India, the market for high quality corporate bonds being not developed, the yield of government bonds is considered as the discount rate. For most of our overseas defined benefit plan, given that the market for high quality corporate bonds is not developed, the Government bond rate adjusted for corporate spreads is used.
Weighted average rate of increase in compensation levels		The average rate of increase in compensation levels is determined by the Company, considering factors such as, the Company’s past compensation revision trends, inflation in respective markets and management’s estimate of future salary increases.
Attrition rate		Attrition rate considered is the management’s estimate based on the past long-term trend of employee turnover in the Company. The tenure has been considered taking into account the past long-term trend of employees' average remaining service life which reflects the average estimated term of post-employment benefit obligation.

Assumptions used in determining the present value obligation of the interest rate guarantee under the Deterministic Approach:


	As of
	March 31, 2024			March 31, 2023
Government of India (GOI) bond yield (1)		7.00	%		7.10	%
Expected rate of return on plan assets		8.20	%		8.15	%
Remaining term to maturity of portfolio	6 years			6 years
Expected guaranteed interest rate		8.25	%		8.15	%

(1)

In India, the market for high quality corporate bonds being not developed, the yield of government bonds is considered as the discount rate. The tenure has been considered taking into account the past long-term trend of employees’ average remaining service life which reflects the average estimated term of the post-employment benefit obligations.

Summary of Sensitivity of Significant Assumptions Used for Valuation of Defined Benefit Obligation

These defined benefit plans expose the Group to actuarial risk which are set out below:


Interest rate risk:		The present value of the defined benefit plan liability is generally calculated using a discount rate determined by reference to government bond yields and in certain overseas jurisdictions, it is calculated in reference to government bond yield adjusted for a corporate spread. If bond yields fall, the defined benefit obligation will tend to increase.
Life expectancy and investment risk:		The pension fund offers the choice between a lifelong pension and a cash lump sum upon retirement. The pension fund has defined rates for converting the lump sum to a pension and there is the risk that the members live longer than implied by these conversion rates and that the pension assets don’t achieve the investment return implied by these conversion rates.
Asset volatility:		A proportion of the pension fund is held in equities, which is expected to outperform corporate bonds in the long term but give exposure to volatility and risk in the short term. The pension fund board of insurer is responsible for the investment strategy and equity allocation is justified given the long-term investment horizon of the pension fund and the objective to provide a reasonable long term return on members’ account balances.

Sensitivity of significant assumptions used for valuation of defined benefit obligation:


		(Dollars in millions)
Impact from	As of March 31, 2024
	Gratuity	Pension
	1% point increase / decrease	0.5% point increase / decrease
Discount rate	13	5
Weighted average rate of increase in compensation levels	12	1

Summary of Maturity Profile of Defined Benefit Obligation

Maturity profile of defined benefit obligation:


(Dollars in millions)
	Gratuity	Pension
Within 1 year	38		7
1 - 2 year	37	8
2 - 3 year	41	8
3 - 4 year	50	8
4 - 5 year	53	8
5 - 10 years	254	40

Summary of Various Categories of Plan Assets


Particulars	Pension
	As of
	March 31, 2024	March 31, 2023
Equity	34%	34%
Bonds	32%	32%
Real Estate/Property	26%	26%
Cash and Cash Equivalents	1%	1%
Other	7%	7%

The breakup of the plan assets into various categories as of March 31, 2024, and March 31, 2023 are as follows:


	As of
	March 31, 2024			March 31, 2023
Central and State Government bonds		60	%		60	%
Public sector undertakings and Private sector bonds		30	%		33	%
Others		10	%		7	%