Wipro is rolling out 87 percent of the variable pay for the third quarter of the financial year 2022-23, an email sent by Chief Human Resources Officer Saurabh Govil to employees has said.
All bands A to B3 employees and all bands in support functions whose payout is linked to the IT services company's performance would get the variable pay, the email reviewed by Moneycontrol shows.
“Considering the overall performance, with the company multiplier at 1, the variable pay for Q3 FY2022-23 is 87 percent for all those whose pay-out is linked to overall company performance,” the email read.
It applies to employees from the fresher to team-lead bands.
“To drive our common goals, our business-linked variable pay-out is based on a quarter's performance against revenue, bookings, and operating margin,” Govil said.
He outlined three things as part of this — revenue increase of 0.6 percent quarter-on-quarter in constant currency, a 23.7 percent increase in bookings from the previous quarter as well as the operating margin of 16.3 percent, which Govil said was an increase from the last quarter but also below the company’s planned target.
For employees in Bands C1 (managers) and above, the variable payout will be as per the performance of the business unit they are part of.
“For all others, the pay-out is based on their unit/function target achievement as per policy. And will receive a higher pay-out if they have exceeded their unit's target or lower if not,” Govil said.
“For billable and DOP (Ops, Ops Support) employees, minimum Utilization or Contractual Performance Metrics (CPM) threshold of 50 percent is required for pay-out,” the email added.
Employees will receive the variable pay along with the salary for February.
Govil added that the company was confident of remaining on the path to improving margins.
Queries sent to Wipro were unanswered at the time of publishing this copy, which will be updated when the company responds.
In Q3, Wipro's operating margins expanded 120 basis points on a sequential basis to 16.3 percent. Chief Financial Officer Jatin Dalal had said the margin growth was by operational improvements and automation-led efficiencies.
Last quarter, the company paid out 100 percent of the variable pay.
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