Reportedly, the Indian IT major, Wipro announced that it would be rolling out 87 percent variable to its employees in bands A to B3 for the December-ended quarter of FY 2022-23, in an internal email.
Performance Based Variable Payout
Basically, this variable pay of employees would depend on the company’s performance as well as the performance of the business unit in which employees are working, the email noted.
Further adding, “To drive our common goals, our business-linked variable pay is based on a quarter’s performance against revenue, bookings, and operating margin.”
The internal communication highlighted that the variable pay for the December-ended quarter would be rolled out with February month’s salary.
Moving ahead, the company’s consolidated revenue for Q3 FY 2022-23 went up 14.3 per cent YoY to Rs 23,229 crore, as per regulatory filings.
Similarly, the top line increased 3 percent and the bottom line increased by a sharp 15 percent.
Bump In Revenue
When it comes to revenue, Wipro’s revenue from IT services shot up 10.4 per cent YoY.
At the same time, the operating margin calculated as earnings before interest and taxes (EBIT) improved 120 basis points sequentially to 16.3 percent.
“We are continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimization,” said CEO and Managing Director Thierry Delaporte during the earnings call.
Unlike this quarter, the company had awarded 100 percent variable pay to the A to B3 band of employees in the preceding quarter.
Wipro’s rival IT firm TCS rolled out 100 percent variable pay for 70 percent of its employees in the December-ended quarter.
