The Bengaluru-based company will be awarding annual increases to eligible employees with effect from September and the employees will be receiving the increment letters from the managers in the coming days, according to an internal mail sent on Thursday.
“Despite financial pressures in the last quarter, we have ensured a substantially wider coverage and market-aligned salary increase,” the internal mail sent by Chief Human Resource Officer Saurabh Govil stated. “You will receive your MSI letter from your manager over the next few days. The salary increases in this cycle cover about 96% of all Wiproites based on performance and meeting eligibility criteria,” it added. ET has reviewed a copy of the mail. Wipro did not respond to ET’s queries till the time of going to press.
The remaining 4% could be employees who are on extended leaves and sabbaticals, a source close to the development said, adding that a sizable number of employees will get the increases along with September’s month salary. Employees above the C1 band (managers and above) received pay hikes effective June last year but this year employees across the board have been awarded only effective September. ET couldn’t ascertain the quantum of the hikes to be awarded.
The development comes as India’s fourth largest IT services provider by revenue, Wipro, had decided to hold back variable pay to its mid- and senior-level executives for the June-ended quarter due to pressure on operating margins.
ET had reported that Wipro, through an internal email in August announced that employees belonging to C bands and above (managers to C-suite level) will not receive any variable payouts, while associates in A and B bands (freshers to team leader levels) will receive 70% of the target variable pay for the quarter subject to a billability threshold.
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India’s largest software exporter Tata Consultancy Services’ MD and chief executive Rajesh Gopinathan, in April, said that the IT company gave a salary hike of 6-8% in last year and will be looking at similar increments with an upward bias for performances for the year FY22. TCS usually rolls out increments with effect from April. His counterpart at Infosys, Salil Parekh toosaid the company will roll out hikes effective April to
ET in an interview earlier this year.
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