As per this latest update, Indian IT major Wipro may not give salary hikes to top performers that fall in high-salary brackets this year.
No Salary Hikes For Employees From High-Salary Brackets
It appears that the IT service provider is likely to skip salary hikes to “top performers with higher compensation” in its largest business line in the upcoming round of salary revisions in December as per the media report which quotes an internal memo.
In an email to employees, the managing partner and president of the “Enterprise Futuring” business line, Nagendra Bandaru said, “We are doing a selective MSI (merit salary increases) rollout based on our business affordability.”
As per this development, the Bengaluru headquartered IT firm will prioritize employees with lower compensation among those eligible for a raise, Bandaru added.
“top performers with higher compensation may not be covered in this cycle,” the mail further noted.
So the employees who will be eligible for this salary hike will receive their increased salaries on December 1.
Merger Of Five Wholly-owned subsidiaries
Prior to this, Wipro announced the merger of five of its wholly-owned subsidiaries with and into parent entity Wipro Limited at the the start of this month.
During a board meeting, the decision to merge Wipro HR Services, Wipro Overseas IT Services, Wipro Technology Product Services, Wipro Trademarks Holding and Wipro VLSI Design Services was taken in October.
This plan for merger of its five wholly owned subsidiaries would require statutory and regulatory approval, including a nod from the National Company Law Tribunal (NCLT).
Wipro Enterprise Futuring deals with large-scale digital and tech transformation for companies is one of four global business lines at the Bengaluru-based company created as part of an organizational overhaul in April this year.
It appears that Wipro had already delayed its salary hike cycle.
This would definitely affect the This would definitely affect the employees of this IT major which has 244,707 employees as of September 30.
Tribunal (NCLT).
When it comes to merger, the IT giant cited four reasons behind the merger decision –
- Is to consolidate business operations,
- To enable synergies of operations,
- To facilitate a reduction in overheads including administrative, managerial, and other expenditures
- To ensure optimized legal entity structure, and significantly reduce multiplicity of legal and regulatory compliances.
