Wipro CEO Greenlights Salary Hikes to Retain Top Tech Talent

Wipro, India’s fourth-largest IT services exporter, has announced that it will resume its merit salary increase (MSI) cycle effective March 1, 2025.

This decision ends a prolonged hiatus of over a year, during which the Bengaluru-based firm deferred hikes amid a challenging global macroeconomic environment and shifting internal leadership.

Wipro Ending the Salary Freeze

The upcoming salary increments will be the first for many employees since the previous cycle in late 2023.

While Wipro typically rolls out hikes in the third quarter of the fiscal year, the company skipped the 2024 cycle to prioritize operational efficiency and margin protection.

Under the leadership of CEO Srini Pallia, who took the helm in April 2024, the company has focused on a “back-to-basics” approach to stabilize revenue growth, which has paved the way for this long-awaited compensation revision.

Eligibility and Selective Coverage

Internal communications indicate that the salary hikes will be performance-linked and distributed based on individual contributions.

However, reports suggest that the rollout may be selective.

In previous cycles, Wipro excluded employees with lower performance ratings or those above certain compensation brackets from the MSI.

For the March 2025 cycle, the company is expected to prioritize “top performers” and those with niche skills in high-demand areas like Artificial Intelligence and Cloud computing.

Wipro Aligning with Industry Trends

Wipro’s move follows similar actions by its peers in the Indian IT sector.

Tata Consultancy Services (TCS), Infosys, and HCLTech have already completed or initiated their annual appraisal cycles.

By resuming hikes in March, Wipro aims to stem attrition and boost employee morale.

The company has seen significant leadership churn over the past 18 months.

Competitive compensation is now viewed as a critical tool to retain talent as the industry prepares for a potential recovery in tech spending by late 2025.

Financial Outlook and Margins

The decision to resume hikes comes at a time when Wipro has shown improved operating margins despite sluggish revenue growth.

Management has indicated that they factored the cost of these increments into their financial planning for the upcoming quarters.

Analysts suggest that the moderate nature of these hikes reflects a cautious but optimistic outlook for the 2026 fiscal year.

Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.