Wipro Salary Hike: IT giant Wipro is set to implement salary increases for its employees, beginning on December 1, according to a report by The Economic Times. The Bengaluru-based IT firm had postponed the hikes, due in September, by a quarter due to macro headwinds and margin pressure.
The annual hikes will be merit-based and finalised over the forthcoming weeks before effecting in December.
In July, Wipro undertook strategic shifts to bolster profitability and improve its standing in the IT services sector. The company selectively reduced its client base and focused on contracts with higher margins and increased revenue potential. This strategy was deployed shortly after Wipro recorded a 2.8 per cent sequential decline in revenue for the June quarter. Additionally, in February of this year, the firm reduced the pay packages of new recruits by nearly 50 per cent compared to initial offers.
An email to employees from Chief Human Resources Officer Saurabh Govil, as cited by The Economic Times, stated, “Despite the current challenging and uncertain global market conditions, we are pleased to announce that our merit salary increases (MSI) will take effect from December 1, 2023… Over the next few weeks, merit salary increases will be determined for eligible employees based on current compensation, skills, and performance.”
India’s largest IT firm, Tata Consultancy Services, is the only major IT firm that awarded salary hikes for fiscal 2023 with effect April. The Tata Group company gave 12-15 per cent for “exceptional performers”. The hikes had an overall 200-basis point impact on their margin.
Earlier it was reported that Infosys started its next appraisal cycle last month, even though FY23 hikes have still been pending. India’s third-largest IT firm, HCLTech, told the publication in July that senior employees will not get annual increments for this fiscal year while hikes will be deferred by a quarter for other staff.
TCS will kick off the second quarter earnings season on Wednesday, followed by Infosys and HCLTech on Thursday. Wipro is scheduled to announce its numbers on October 18. It had projected to report between a decline of 2 per cent and growth of 1 per cent in revenue from a year earlier for the quarter ended September 30.
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