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Bengaluru: Wipro Ltd is giving out salary hikes to employees starting September, which could be better than last year's. Top performers at the country’s fourth-largest information technology (IT) services firm can get salary increments of around 8% on average, two company officials told Mint on the condition of anonymity, which will make this year's hikes better than last year’s average of around 6%. About three-fourths of Wipro’s 200,000 offshore employees working away from client locations can potentially get a hike of nearly 8%, while those working from client locations might get a 3% bump in salary, according to the first of the two officials cited earlier.
“We are delighted to let you know that our merit salary increase (MSI) cycle will be effective September 1, 2024 - less than 12 months from the previous MSI," read an internal email sent by Saurabh Govil, Wipro’s chief human resources officer, to employees on 29 August and accessed by . Also Read: Wipro typically gives salary hikes during September-October, but had delayed it last year before rolling out the increments from December 2023. “HR partners will soon share detailed eligibility guidelines and the process with your managers.
Revised compensations will reflect from the October payroll along with September arrears," read Govil’s mail to employees. Tech slowdown Wipro becomes the second large Indian software company after Tata Consultancy Services Ltd (TCS) to have announced a salary hike, assuaging concerns of a potential delay amid a global tech slowdown. An email sent to Wipro remained unanswered till press time.
TCS gave double-digit wage hikes for high performers and an average 4.5-7% for the rest, effective 1 April 2024. Also Read: India’s $254-billion IT sector grew at 3.
8%, its slowest pace, last year as clients cut tech spending due to macroeconomic uncertainties. Wipro’s median remuneration to employees excluding whole-time directors increased 9.43% in the year ended March 2024, compared with the preceding year.
To be sure, hikes are not uniform across teams. The second official said hikes this year can be more than 8% and definitely more than last year. The expectation “We expect hikes of more than 8% this time around.
While we are not sure of the exact number, we are confident that it will be more than how much we received last year. However, we will have to wait and watch for the hike letters due shortly, which will spell out the exact hike numbers," said the official. While experts do not foresee an immediate turnaround, optimism persists.
“Enterprise clients remain focused on cost optimisation which continues to drive the bulk of the tech spend, but some of the stalled projects have resumed. Pricing is expected to be stable with some upward bias (a positive sign). Enterprises are starting to commit to net new spending in pockets," said HDFC Securities analysts in a note dated 13 September.
Also Read: While Wipro and TCS have put announced their salary hike plans, uncertainty still looms at Noida-based HCL Tech and Bengaluru-based Infosys Ltd, both of which have not decided on the timeline of salary hikes for the year. “IT services companies are unsure of the macroeconomic situation. They are waiting to have a clearer picture of their growth prospects before they decide on the quantum and timings of the hikes," said Pareekh Jain, CEO and lead analyst at EIIRTrend.
Wipro spent 549 billion ($6.6 billion) as employee costs for the year ended March 2024, which made up 61% of the company’s full-year revenue of $10.8 billion.
The hike cycle also comes at a time when Wipro looks to hire from campuses after a year's gap. The company is expected to scale up its fresher hiring target from 10,000 for the year ended March 2025. Also Read: Wipro underwent a change in leadership a little less than six months ago when Srinivas Pallia took over as the company’s chief executive officer on 6 April 2024, replacing Frenchman Thierry Delaporte.
“The next few months will be crucial as we steer the company towards growth. As a passionate hiker, I deeply connect with these words from Junko Tabei, the first woman to climb Mount Everest. She said, “Even it was hard, you can reach the peak if you climb step-by-step.
Of course, I seek the trust and continued support of all of you, our clients, our associates, partners and media as we move forward," said Pallia in his first post-earnings interaction as CEO on 19 April 2024..
