Bengaluru-based, IT major Wipro has announced that it will be awarding annual increments to eligible employees for the year ending 2022.
The employee will receive the salary increment in their September salary along with their merit salary increase letter. The company is expected to cover 96 percent of its employees.
Earlier, Wipro said, “There is no change to our earlier statement on salary increase, and hikes for our employees will be effective from September 1, 2022.”
The internal mail, which was sent by Saurabh Govil, Chief Human Resource Officer of Wipro, reads: “Despite financial pressures in the last quarter, we have ensured a substantially wider coverage and market-aligned salary increase.”
It further added that “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.”
Employees, who are above the C1 band – managers and above – have already received pay hikes effective June last year, however, this year employees have been awarded only effective September.
Earlier, Wipro held back the variable payouts of Q1, June 30 ending quarter for mid to senior-level employees.
According to the people that are aware of the matter said that it is due to the pressure on operating margins. However, the freshers and the employees till the position of the team leaders will receive 70% of the target variable pay depending on their billability.
The information was shared with the employees through internal communication to employees.
The email to employees said, “We’ve seen some continued pressure on operating margins. Our Q1 margins were lower at 15% due to inefficiency in our talent supply chain, project margins, and our investments in talent, technology, and solutions during the quarter.”
“Given our underperformance on margins this quarter, our variable pay takes a hit”, it further explained.
The company added 15,000 employees in the first quarter of this fiscal with a total headcount of 258,574 employees on June 30, 2022. Which was 243,128 in the previous quarter, on March 31, 2022.
Wipro onboarded more than 10,000 freshers during April to June quarter.
The company has reported an attrition rate of 23.3 percent, slightly lower than the previous quarter’s 23.8 percent, but significantly higher than 15.5 percent during the corresponding quarter last year.
The total strength of the sales and customer support team in the Company stands at 17,806, which, interestingly, makes up for 6.8 percent of the total strength of the workforce.