Wipro to pay out 80% of variable pay in Q2FY24

Wipro will pay 80 percent of the variable pay for Q2 for junior employees whose payout is linked to company performance, Wipro’s Chief Human Resources Officer Saurabh Govil said on October 18 after the company announced its results for Q2FY24. For the remaining employees, the payout is linked to business unit performance.

“Variable pay for the quarter will be in line with what we did last quarter. It will be different for different units based on their performance. Across, around 80 percent is what people will be getting,” Govil said.

Earlier this month, Govil wrote an email to employees stating that their salary hikes would be effective December 1. “Despite the current tough and uncertain global market conditions, we are pleased to announce that our MSI cycle will take effect from December 1, 2023. Over the next few weeks, Merit Salary Increases (MSI) will be determined,” he said, with the hikes being based on current compensation, skills, and performance. Wipro’s salary hike cycle has been delayed by a quarter.

This comes at a time when the company has seen a decline in headcount for four consecutive quarters, and its headcount has shrunk by 5,051 in the September quarter.

The company has also said it will not be hitting campuses to hire yet, as hiring remains subdued across the industry. Three other largecap IT companies -- TCS, Infosys, and Wipro, also reported a decline in headcount on a net basis.

Wipro, which has seen onboarding delays persist for several quarters, still has freshers it made offers to in FY22 it is yet to onboard.

“Hiring is a function of our current supply chain in terms of the demand we have, the bench we have. We will continue to hire and we are hiring every quarter. From a campus standpoint, it is to honour every offer we have made to our people and there are still some left to be honoured,” Govil said.

“We will do that before we go to the campuses. That’s our intent, and we will see a much better view of things as the market looks up. Right now, we are very focussed on making sure we honour all commitments we have made in the past,” Govil added.