Wipro delays pay raises until Q3 and will pay 80% of variable compensation in Q1FY24

14 Jul 2023 , 12:43 PM

Instead of giving out the compensation increase in September as it did the previous year, Wipro would delay it until the third quarter of the fiscal year. The company’s management insisted that pay raises will be given out during the press conference.

The issue of pay raises arises at a time when businesses are trying to protect their profit margins and reduce their wage costs, with the former being particularly concerning in the case of Wipro. Even though it intends to give out pay hikes in Q3, the firm has stated that the margins would be within a similar range.

In the company’s call with investors, Chief Financial Officer Jatin Dalal stated, ‘We did our last salary increase in September of last year, and we plan to do that for this year sometime in quarter three,’ adding that the impact was not being taken into account for Q2.

While HCLTech has announced that it will postpone raises to junior and mid-level employees by a quarter and skip the compensation review for the management layer and above this year, Wipro’s cross-town rival Infosys has delayed its raise because it has not paid out hikes as per its usual April cycle for junior employees. The leadership of HCLTech stated on the analyst call that the latter accounts for a sizeable chunk of the salary expense.

During the company’s press conference, Saurabh Govil, the chief human resources officer, stated that Wipro is still carrying out its quarterly promotion cycles. It did so in Q1 and would do so in Q2, he added.

For the first quarter, the company will distribute 80% of the junior level employees’ variable pay, which is contingent upon the success of the business. The variable remuneration for employees at the manager level and above will depend on how well the business unit they work for performs.

Despite this setting, ‘our variable pay will pay out will be around 80% in Q1.’ We will continue to provide for the needs of our staff while calibrating with corporate needs, he said.

It claimed that it did not onboard in Q1 and did not visit any universities throughout the current fiscal year. Additionally, the business kept its hiring intentions a secret and had 8,812 fewer workers at the conclusion of the quarter.

For feedback and suggestions, write to us at [e-mail]