The IT giant Wipro has made plans to institute salary increases for its workforce commencing from December 1, as informed by new reports.
Originally slated for September, the Bengaluru-based IT company had deferred these salary hikes by a quarter due to prevailing macroeconomic challenges and margin pressures.
Wipro Announces Salary Hikes
These annual increments will be performance-based and will be finalized in the upcoming weeks before being put into effect in December.
In July, Wipro made strategic shifts aimed at bolstering profitability and enhancing its position within the IT services sector. The company opted to trim down its client base selectively, concentrating on contracts that offer higher margins and increased revenue potential. This strategic maneuver followed a 2.8 percent sequential dip in revenue for the June quarter. Moreover, earlier in the same year in February, Wipro reduced pay packages for new hires by almost 50 percent compared to their initial offers.
In an email to the employees, Chief Human Resources Officer Saurabh Govil conveyed, as cited by The Economic Times, “Despite the ongoing challenging and uncertain global market conditions, we are pleased to announce that our merit salary increases (MSI) will take effect from December 1, 2023… Over the next few weeks, merit salary increases will be determined for eligible employees based on current compensation, skills, and performance.”
Tata Is the Only Company To Grant Salary Hikes
Tata Consultancy Services, India’s largest IT company, stands as the sole major IT firm that has granted salary hikes for fiscal year 2023, effective since April. This Tata Group company offered 12-15 percent hikes for “exceptional performers,” impacting their margins by 200 basis points.
Previous reports indicated that Infosys initiated its next appraisal cycle the previous month, even though salary hikes for fiscal year 2023 are still pending. HCLTech, India’s third-largest IT firm, mentioned in July that senior employees would not receive annual increments for this fiscal year, and hikes would be postponed by a quarter for other staff.
TCS is set to kick off the second-quarter earnings season on Wednesday, followed by Infosys and HCLTech on Thursday. Wipro is slated to release its financial results on October 18, projecting a revenue decline of 2 percent to a growth of 1 percent from the previous year for the quarter ending on September 30.
