In a recent update, the Indian IT major, Wipro has disbursed an average of 90% variable pay to the majority of its employees for the Q4 FY25.
Wipro Roll Out 90% Variable Payout For Q4
It appears that the company’s current variable pay trajectory isn’t an anomaly; rather , it is the continuation of a policy that dynamically adjusts to both company and market performance.
If we look into the preceding quarters of FY24,
Wipro had rolled out an average variable payout of 80% for Q1 and 81% for Q2, rising to over 85% for Q3.
When it comes to the calculations for the variable payout, the company’s internal communication links variable pay to three key factors including revenue (40%), gross margin (30%), and total contract value (30%).
Earlier, the IT service provider reported a consolidated net profit of ₹3,569.60 crore by marking a healthy 25.93% year-on-year increase from ₹2,834.60 crore in the corresponding quarter of FY24.
Wipro’s revenue from operations also witnessed a modest uptick by growing 1.33% to ₹22,504.20 crore.
While giving a testament to disciplined execution and strategic cost optimization, the company’s IT Services operating margin remained stable at 17.5%, which is flat QoQ and an expansion of 1.1% YoY.
Besides this, the IT firm secured two mega deal wins in the quarter further signaling improved client engagement and a focus on high-value consulting-led transformation programs, particularly in AI-driven solutions and engineering services.
So far, these numbers indicate a stable performance on the other hand, its broader industry narrative has been one of subdued growth and prudence.
All in all, Wipro’s 90% variable payout for Q4 FY25 for employees in junior to mid-level roles (Bands A to B3) stands out in this context.
Moving ahead, the average variable payout for Wipro employees was an impressive 95%, disbursed along with May salaries for the whole financial year (FY25).
IT Industry Using Varied Approaches
When compared with its peers, Wipro’s variable pay decision gains further context in the Indian IT industry.
For instance, Infosys offered a significantly lower average variable payout of approximately 65% for the same Q4FY25 period.
This action was explicitly attributed to a “subdued market climate” and a more conservative approach in a challenging business environment.
In a closure look, Infosys had offered 80% in Q3 FY25 and 90% in Q2 FY25 which was indicating a downward trend in line with market conditions.
Their TCS also adopted a differentiated approach where they awarded 100% variable pay to over 70% of its workforce for the January-March 2025 quarter.
The payouts were reportedly as low as 20 – 40 % for the senior staff and those in business units with weaker performance.
The different approaches by these companies indicates that while the overall industry faces similar macroeconomic headwinds, individual companies are adopting varied strategies for employee compensation.
If we consider the historical data, Indian IT companies have used variable pay as a crucial tool for performance management and cost flexibility.
