In a first since FY17, Wipro and Tech Mahindra reported simultaneous drops in median employee remuneration. Wipro saw a 0.6% decline, bringing the median salary to ₹9.78 lakh, while Tech Mahindra reported a 6.52% fall, with male employees earning a median of ₹18.3 lakh and female employees ₹15.4 lakh, according to their FY25 annual reports.
Cost Management Drives Salary Adjustments
Analysts attribute the dip in median salaries to a shift in hiring patterns, where both companies added more freshers and junior-level replacements in a bid to boost margins. Wipro added 732 employees, and Tech Mahindra added 3,276. Hiring at lower wage levels has shifted the salary midpoint down, especially with fewer mid- and senior-level employees.
Leadership Churn and Fresh Talent Strategy
Both companies experienced leadership churn, with Tech Mahindra losing over 20 senior leaders since March 2024 and Wipro witnessing exits of 30+ senior executives in the past two years. The strategic focus has shifted towards internal promotions and cost optimization, especially under new leadership.
In Contrast, TCS and Infosys Raise Salaries
While Wipro and Tech Mahindra trimmed pay, TCS and Infosys reported median salary increases of 6.3% and 9.6%, respectively. HCLTech, whose report is pending, has never reported a fall in median pay in the last decade. In contrast, Tech Mahindra has reported such a drop six times, and Wipro three times in ten years.
Margins Up, Revenues Down
Despite the salary cuts, Wipro and Tech Mahindra improved their operating margins—Wipro by 100 basis points to 17.1%, and Tech Mahindra by a substantial 360 basis points to 9.7%. Yet, both saw revenue declines for the second consecutive year—2.72% for Wipro and 0.21% for Tech Mahindra.
Experts say the companies are capitalizing on a surplus of experienced professionals in a sluggish job market, often hiring at lower pay scales. This approach reflects a broader effort to stay competitive by managing workforce costs without significantly impacting talent depth.
