In a resolute move to support its employees during challenging global market conditions, Wipro’s Chief Human Resources Officer, Saurabh Govil, has announced the forthcoming implementation of Merit Salary Increases (MSI). This strategic decision underscores Wipro’s commitment to its workforce, despite the prevailing macroeconomic difficulties and margin pressures.
Wipro, headquartered in Bengaluru, has opted to initiate annual salary hikes for its employees, starting from December 1. Acknowledging the complexities of the current macroeconomic climate, the company initially postponed these increments by one quarter. In the coming weeks, the wage adjustments will be thoughtfully determined on a case-by-case basis.
Mr. Saurabh Govil communicated this significant development to the Wipro staff through an internal email. The Merit Salary Increases (MSI) will be awarded based on individual performance, unique talents, and existing salary levels, highlighting Wipro’s emphasis on recognizing and rewarding excellence.
The last salary review for Wipro employees took place in September of the previous year, and the company originally intended to conduct the wage review for the current year during the third quarter (October-December). This strategy was discussed by Jatin Dalal, the former Chief Financial Officer of Wipro, in an analyst call held in July. Notably, Tata Consultancy Services (TCS) emerged as the sole significant IT firm that initiated compensation increases for the fiscal year 2023, beginning in April. TCS significantly raised pay for outstanding employees by 12–15%, leading to a 200-basis point impact on their margin.
In contrast, Infosys had already commenced its subsequent evaluation cycle a month earlier, even though wage increases for the fiscal year 2023 had not yet received approval. Senior personnel will not receive annual raises, according to HCLTech’s policy.
The slowdown in technology spending has undoubtedly influenced the growth of the $245-billion Indian IT industry. Its 5.1 million employees have experienced deferred salary increases and reduced variable pay. However, major Indian IT firms have managed to secure substantial cost optimization deals, although industry analysts speculate on their limited impact on growth guidance.
The upcoming quarter will witness TCS initiating the second-quarter earnings season, with Infosys and HCLTech closely following suit. Wipro is scheduled to announce its results on October 18, where the company’s projected revenue performance will be closely monitored, with expectations ranging from a 2% decline to a 1% growth compared to the previous year for the quarter ending on September 30. This move further exemplifies Wipro’s resilience and adaptability in navigating the challenges of today’s global market landscape.