Wipro, one of India’s leading IT services companies, has announced a merit-based salary hike for its employees, effective from September 1, 2024.
This decision comes after a nine-month delay due to macroeconomic uncertainties.
The announcement was made by Wipro’s CEO, Srinivas Pallia, during the company’s Q2 FY25 results press conference.
The salary hike announcement is a significant move by Wipro, especially in the context of the broader IT industry, which has been grappling with economic challenges and a tepid demand environment.
Many IT companies, including Wipro, had deferred salary increments to maintain their operating margins.
The decision to implement the salary hike now reflects Wipro’s confidence in its financial stability and future growth prospects.
Details of Wipro Salary Hike
Wipro’s CEO, Srinivas Pallia, stated that the company has implemented a merit-based salary increase effective from September 1, 2024.
This hike comes just nine months after the last cycle, indicating a return to a more regular increment schedule.
The company had previously delayed salary hikes due to the uncertain economic environment, which had impacted discretionary spending in key markets such as the US and Europe.
Despite the salary hikes, Wipro reported a 21% increase in its net profit for the September 2024 quarter, amounting to ₹3,209 crore.
This growth was driven by higher spending from clients in the US communications sector.
The company’s revenue for the July-September 2024 period rose by 1% to ₹22,300 crore.
Wipro’s Chief Financial Officer, Aparna Iyer, highlighted that the company’s operating margin for the quarter stood at 16.8%, a sequential increase of 35 basis points.
This expansion in margins was achieved through operational improvements, even after absorbing one month of salary increases.
Wipro Employee and Hiring Updates
Wipro’s Chief Human Resources Officer, Saurabh Govil, provided updates on the company’s hiring and onboarding processes.
He mentioned that Wipro has been consistently onboarding between 2,500 and 3,000 freshers every quarter since Q1 of this fiscal year.
The company plans to hire 10,000 to 12,000 people for FY25, including both on-campus and off-campus recruits.
Saurabh assured that the fresher backlog would be cleared by the end of Q3 FY25.
Industry Comparison
The IT industry has seen varied approaches to salary hikes this year.
While Wipro has rolled out its increments in September, other major players have taken different paths. TCS implemented salary hikes in Q2.
HCLTech announced a 7% salary hike effective from October, with top performers receiving raises of up to 12-15%.
Infosys, on the other hand, has decided to implement salary hikes in two phases.
Junior employees will receive increments in January, while the rest will get theirs in April.
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