Wipro, one of India’s leading IT services companies, has announced an average variable pay of 90% for most of its employees in Q4 FY25.
This payout stands out in the IT sector, where companies like Infosys and TCS have taken a more conservative approach due to global economic uncertainties.
The higher-than-expected variable compensation reflects Wipro’s strong business performance in the fourth quarter and its commitment to employee recognition.
The announcement comes at a time when salary hikes remain uncertain across the IT industry, with many firms delaying or reducing increments due to market volatility and geopolitical tensions.
Wipro Variable Pay Strategy Compared to Industry Peers
Wipro’s 90% variable pay is significantly higher than Infosys, which paid around 65% due to a soft business environment.
Meanwhile, TCS granted full variable pay to 70% of its workforce, with the rest receiving it based on business unit performance.
For the full financial year, Wipro’s average variable pay stood at around 95%, with employees receiving their payouts along with their May salaries.
This consistent payout strategy highlights Wipro’s focus on employee retention and morale, despite broader industry challenges.
IT Sector Faces Uncertain Salary Hikes
While Wipro has maintained strong variable pay, salary hikes across the Indian IT sector remain uncertain. Many companies are cautious about performance bonuses, citing:
- Global business uncertainty.
- Ongoing tariff wars.
- Geopolitical tensions affecting client spending.
Infosys had previously given salary hikes in the range of 5–8%, while TCS paused salary hikes in April, stating that future increments would depend on business clarity.
Wipro has also delayed its annual hike cycle, which typically starts in July, with reports suggesting that salary hikes may only be offered toward the end of the year.
Strategic AI-Powered Deal with Entrust by Wipro
Alongside its variable pay announcement, Wipro has signed a multi-year strategic deal with US-based identity security firm Entrust.
The agreement focuses on:
- Modernizing Entrust’s product development.
- Enhancing infrastructure and applications.
- Leveraging generative AI and advanced analytics.
The financial details of the deal have not been disclosed, but the partnership is expected to strengthen Wipro’s AI-driven digital transformation capabilities.
Following the announcement, Wipro’s shares rose by 1.64%, reaching ₹249.70 on the BSE.
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