Wipro will pay out 100 percent of variable pay to 85 percent of employees for the second quarter, the company's Chief Executive Officer Theirry Delaporte told mediapersons on October 12. This came as the company announced its results for the second quarter.
The remaining 15 percent of employees will get their variable pay as per policy, Chief Financial Officer Jatin Dalal told Moneycontrol, but did not share details on the quantum of variable pay to these employees or what bands these employees belong to.
Last quarter, Wipro slashed variable payouts across bands. While those in junior bands received 70 percent of their variable pay, those in B and C and above — mid-manager level and above — did not receive their variable pay for the quarter, which was attributed to margin pressures.
Earlier this week, Wipro’s rival Tata Consultancy Services had said that 70 percent of employees will receive full variable pay for the quarter.
Wipro's attrition in Q2FY23 came in at 23 percent, a slight dip sequentially on a trailing-twelve-month basis as compared to last quarter. However, Wipro’s net headcount addition fell significantly this quarter, adding only 605 employees as opposed to over 15,000 employees last quarter.
The IT major rolled out its scheduled salary hikes to employees in September as well as quarterly promotions, which too has had an impact on its margins this quarter.
Wipro’s margins for the quarter were up by 16 bps. According to CFO Jatin Dalal, there was a 0.9 percent impact. “It was really our investment back into the business in form of one month's salary increase and promotions that we gave from July 1,” he said.
CHRO Govil had informed employees that 96 percent of all eligible employees would receive their salary hikes based on performance and on meeting the eligibility criteria.
Wipro is also rolling out promotions quarterly to its top performers, up to the mid-management level.
The company is also asking employees to return to offices thrice a week from the week starting October 10.
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