As tariffs derail discretionary demand for IT companies, Wipro says wage hikes in FY26 will be decided closer to the date. The development comes after industry leader Tata Consultancy Services (TCS) also deferred wage hikes this year, which will be rolled out "based on business environment".
“We are still very far from that time, and in this uncertain environment, we will decide closer to the date,” Chief Human Resource Officer Saurabh Govil said after declaring the fourth-quarter results ended March 31, 2025.
He added that Wipro gave wage hikes ahead of time in September last year. And that was done within a year of rolling out wage hikes in December 2023.
Meanwhile, Street concerns have grown over a potential economic slowdown after US President Donald Trump refrained from ruling out a recession amid the implementation of trade tariffs.
In October, Wipro announced a pay hike from September 1, 2024. “We implemented merit salary increase effective September 1, just nine months after the last cycle,” Pallia said then.
Meanwhile, India’s fourth-largest IT services player said uncertainties for the sector have dramatically increased from FY25 to FY26, as a result of tariffs-triggered macroeconomic uncertainty by US President Donald Trump.
“I don't have a crystal ball that tells me how it (macroeconomic issues) goes… going from context of FY25-26, the uncertainties have dramatically increased,” Chief Executive Officer Srinivas Pallia said while addressing a press conference after declaring the Q4FY25 results.
Pallia added that the huge trade between Europe and the US, coupled with the impact on European clients because of tariffs against China, will have an adverse impact going forward. “With that in context, we have looked at all the uncertainties… clients, and based on that we have given our guidance.”
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