An Indian multinational information technology services and consulting company, LTIMindtree rolled out very poor increments for its employees, many have received a 0-2% hike even after months of delay.
Major tech companies are delaying the salary hike for employees exponentially due to economic uncertainties.
The move of salary delay is part of a larger trend of tech companies as investors become increasingly fearful of a recession.
Moreover, Tech companies not only delay the salary hikes for employees they are also freezing the hiring process and laying off employees.
LTIMindtree general wage increment cycle begins in April. The company has now delayed to August. There have several employees who have received zero percent increments while some employees have also received hikes of 1-2 percent in fiscal year 2024.
The media reports have also suggested that LTIMindtree has revised the salary structures leading to lower side increments as the variable pay (which could be around 8.5 percent of the overall package) has been included in fixed pay.
Other Companies Salary Increase / Announcements
Tetley will be increasing the salary of employees by 7% salary. The raise will be effective from 1 April 2023.
This will benefit roughly 200 employees working for Tata Consumer Products, the manufacturer of Tetley goods for Canada and the UK.
Tech Mahindra defers salary hikes for senior employees due to a huge drop in net profile in Q1FY24. Wipro has also announced a delay in its wage hike cycle for the fiscal year.
Chief Financial Officer Jatin Dalal said, “We did our last salary increase in September of last year, and we plan to do that for this year sometime in quarter three.”
Wipro has announced that it has postponed the salary hike of its employees to the 3rd quarter, the salary hike given in September last year will be postponed to the October-December quarter this year. The company plans to carry out the pay raise in the third quarter of the year instead of Q2.
This is Similar steps are being taken at other Indian IT services companies. The technology company HCLTech has deferred salary hikes for their employees by one quarter.
Chief People Officer Ramachandran Sundararajan said, “Typically, this time of the year, we make our announcements on pay reviews.”
“Last couple of years the hiring that we have done and the compensation reviews that we have done, we have taken that into consideration and have taken a decision to defer our annual reviews by a quarter,” Ramachandran Sundararajan added.
Infosys has deferred the salary hikes of its employees which it usually rolls out from April for its employees below the senior management level.
Usually, Infosys rolls out pay hikes for employees below the senior management level in the month of June quarter, but employees yet have not received any communication from the company.
TCS has rolled out an annual salary increase with effect from April 1st. The company has given a 12-15% raise for exceptional performers in the latest annual compensation review and also commenced the promotions cycle