Most IT services-providing companies have announced Nil/less salary increments or deferred salary hikes due to economic uncertainties.
Also, Major tech companies are delaying the salary hike for employees exponentially. 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 are also freezing the hiring process and laying off employees.
LTIMindtree rolled out very poor increments, 0-2% hike after the delay
LTIMindtree rolled out very poor increments for its employees, many have received a 0-2% hike even after months of delay.
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.
Tetley, Wipro, 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.
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.
TCS Salary Hike: TCS Rolls Out 12-15 percent
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.
Milind Lakkad, Chief HR Officer, said, “We remain focused on developing, retaining, and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to the office to foster our culture. Our Return to Office initiative is picking pace, with 55% of the workforce already in the office thrice a week.”
“We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle”, he added.
TCS employees in FY23 saw a median remuneration increase of 5.11 percent as per the company’s annual report.
Microsoft won’t give employees salary raises this year
As per earlier reports, An American multinational technology corporation, Microsoft won’t raise the salary of employees this year for full-time employees.
A spokesperson for the tech giant said, “We recognize that navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people, our business, and our future.”
The reports also added that Microsoft is reducing its bonuses and stock awards budget. The company’s CEO Satya Nadella has informed the employees in an internal email.
The report quoted Nadella saying, “Last year, we made a significant investment in compensation driven by market conditions and company performance, nearly doubling our global merit budget…this year the economic conditions are very different across many dimensions.”
Infosys delays salary hikes of employees
Infosys has delayed salary increases for its employees below the senior management level. This delay in salary hikes indicates that the companies are facing difficulties in the current economic situation, with projects being scaled down or canceled.
Some employees have confirmed that they did not receive their expected pay raises in the first quarter of the year, which is from April to June. Typically, salary hikes for senior management at Infosys are given in July.