Wipro, one of India’s leading IT services companies, has decided to defer its salary hike cycle for employees to the third quarter of the fiscal year. Unlike last year when the hike was paid in September, Wipro employees will have to wait until the third quarter for their salary increase.
According to Chief Financial Officer Jatin Dalal, the decision to postpone the wage hike is aimed at defending margins and controlling wage bills, which have become a concern for the company. Wipro plans to keep its margins within a similar range while providing pay raises in the third quarter.
In the first quarter of the fiscal year 2024, Wipro reported a 11.95% year-on-year rise in consolidated net profit, amounting to Rs 2,870.1 crore compared to Rs 2,563.60 crore in the same quarter of the previous year. The revenue for the quarter increased by 6.04% YoY to reach Rs 22,831 crore.
As part of the compensation structure, Wipro will pay out 80% of the variable pay for the first quarter to junior level employees whose payouts are linked to the company’s performance. For managers and above, the variable payout will depend on the performance of their respective business units.
Wipro’s Chief Human Resources Officer Saurabh Govil stated that despite the challenging environment, the company will maintain an 80% variable pay for the first quarter and will continue to prioritize its employees while aligning with business requirements.
In terms of fresher onboarding, Wipro has not onboarded all the freshers it recruited last year yet. Due to the uncertain demand, the company has decided to calibrate its hiring based on current requirements.
Wipro’s decision to defer salary hikes follows a similar trend among its rivals. Infosys has also postponed its hike for junior employees, and HCLTech has deferred hikes for junior and mid-level employees, while skipping the compensation review for the management layer and above.
Despite the delay in salary hikes, Wipro continues to carry out its quarterly promotion cycles. The company conducted promotions in the first quarter and plans to do the same in the second quarter.
During the first quarter, Wipro witnessed a dip in its headcount by 8,812 employees, bringing the total headcount to 249,758. However, attrition for the quarter stood at an eight-quarter low of 17.3% compared to 19.4% in the previous quarter.
As Wipro navigates the challenges posed by the current business landscape, the company remains committed to managing its costs while prioritizing employee well-being and maintaining its market position.
